Punjab has found itself at the bottom of NITI Aayog’s recently released Fiscal Health Index (FHI) 2025, raising serious concerns about the state’s economic stability. The report, which assesses the fiscal performance of 18 major Indian states, ranks Punjab last due to poor performance across key parameters.

The FHI evaluates states on five critical indicators: Quality of Expenditure, Revenue Mobilization, Fiscal Prudence, Debt Index, and Debt Sustainability. Punjab’s overall score of 10.7 starkly contrasts with Odisha, which topped the list with a score of 67.8. Punjab struggled most with Fiscal Prudence, the Quality of Expenditure, and Debt Index, while performing slightly better in Revenue Mobilization and Debt Sustainability.

Odisha, along with Chhattisgarh, Goa, and Gujarat, emerged as top performers, demonstrating effective fiscal management and robust economic policies.

In the wake of the report, political leaders in Punjab have launched scathing attacks on the ruling Aam Aadmi Party (AAP) government. The Shiromani Akali Dal (SAD) accused the administration of failing to address mounting fiscal challenges, labeling the performance “a complete disaster.”

The report highlights the pressing need for Punjab to adopt strategic reforms to improve its financial management, reduce debt burdens, and enhance the efficiency of its public expenditure.

As Punjab grapples with its fiscal crisis, experts emphasize the importance of long-term planning and accountability to restore the state’s economic health.