States Must Follow Fiscal Deficit Rules, Niti Aayog Emphasizes
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Niti Aayog Urges States to Adhere to Fiscal Deficit Norms for Economic Stability
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News18•11-03-2026, 16:45
Niti Aayog Urges States to Adhere to Fiscal Deficit Norms for Economic Stability
•Niti Aayog calls on states to follow FRBM Act fiscal deficit norms through disciplined spending, broadening GST base, and enhancing tax capacity.
•The 2026 Fiscal Health Index (FHI) identifies Odisha, Goa, Jharkhand, Gujarat, Maharashtra, Chhattisgarh, Telangana, Uttar Pradesh, Karnataka, and Madhya Pradesh as top fiscally-wise states for 2023-24.
•Punjab, West Bengal, and Kerala ranked at the bottom of the index, while Arunachal Pradesh topped among North-Eastern and Himalayan states.
•States are advised to improve revenue mobilisation, broaden GST base, curb committed expenditure, rationalise subsidies, and adopt medium-term fiscal plans.
•Niti Aayog Vice Chairman Suman Bery emphasized strong fiscal health as a crucial buffer against international and domestic economic shocks.
