Haryana Ranks Among Bottom 5 States in NITI Aayog's Financial Health Report

Haryana ranks 14th out of 18 states in NITI Aayog's Fiscal Health Index (FHI) 2025 raising serious concers about the financial health of the state. Haryana is positioned among the bottom five states positioning it among the bottom five states. The comprehensive assessment, which evaluated 18 major Indian states, reveals significant challenges in Haryana's fiscal management and economic stability.

Worrying Debt Burden

The state's debt profile shows worrying trends, with the debt-to-GSDP ratio reaching 31% in 2022-23. Interest payments have increased by 9.4% compared to the previous year, consuming 23% of revenue receipts. Haryana's position on the Debt Index parameter is particularly concerning, ranking 15th with a score of 24.1, performing better than only Kerala, West Bengal, and Punjab.

Expenditure Patterns and Resource Management

The quality of expenditure has emerged as a critical issue, with Haryana ranking 16th in this parameter. Capital expenditure has seen a significant decline, dropping from 16.4% of total expenditure in 2018-19 to just 9.7% in 2022-23. While spending on education and health has improved, social services experienced a 31.3% decrease in allocation during 2022-23. 

NITI Aayog's Recommendations

NITI Aayog's report emphasizes the need for immediate corrective measures. These include broadening the revenue base, rationalizing expenditures, and investing in revenue-generating assets. The state government must also focus on enhancing tax collection efficiency and establishing a robust fiscal management framework to ensure long-term financial stability.