Telangana ranks 7th in NITI’s Fiscal Health Index for 2023-24, reflects BRS’ strong policies

Telangana secured seventh rank in NITI Aayog’s Fiscal Health Index 2026 for 2023-24 with a score of 44.3, topping southern States and placing among national front-runners, reflecting strong revenue mobilisation, welfare spending and infrastructure investments during the previous BRS government

Hyderabad: Telangana has secured the seventh rank in the Fiscal Health Index (FHI) 2026 for financial year of 2023-24 released by NITI Aayog, with a score of 44.3. The State was placed among the frontrunner States, which widely reflected the fiscal policies and development-driven spending pursued during the previous BRS government.

The NITI Aayog listed Telangana alongside Gujarat, Maharashtra, Karnataka, Uttar Pradesh and Chhattisgarh in the frontrunner category, while noting that the State recorded the highest FHI score among the five major southern States. Significantly, Telangana has held the seventh position almost consistently since its formation in 2014, barring the pandemic years, and returned to that rank in 2023-24.

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The latest report credited the State’s stable fiscal condition to sustained investment in welfare, infrastructure creation and strong revenue mobilisation during the BRS regime, which was in power for about eight months of 2023-24 before the Congress took over the reins of the State.

Telangana was placed among the achievers in Quality of Expenditure and ranked third in Revenue Mobilisation, indicating efficient spending and a robust tax base built over the past decade.

Though the Fiscal Prudence score remained marginally low with the State listed among performers, the report said Telangana improved its prudence scores since 2017–20, supported by better capital management and buoyant tax revenues. The State was ranked tenth in State-wise Debt Index score and remained among frontrunners.

According to the report, developmental capital expenditure rose sharply from Rs.16,860 crore in 2019-20 to Rs.43,918 crore in 2023-24, an increase of over 160 per cent, reflecting the aggressive infrastructure push taken up during the previous government. Spending on economic services more than doubled, while social sector expenditure maintained a high share of 38-39 per cent, signalling continued focus on welfare and human capital.

Revenue receipts also grew steadily from Rs.1.02 lakh crore in 2019-20 to Rs.1.69 lakh crore in 2023-24, with nearly 80 percent coming from the State’s own tax revenues, showing reduced dependence on Central grants. Non-tax revenues recorded strong growth, further strengthening fiscal stability.

The report noted that Telangana maintained a revenue surplus and kept the fiscal deficit broadly within statutory limits, even while expanding development expenditure. Though debt levels rose marginally above the FRBM ceiling, the borrowing was largely linked to capital creation and welfare commitments.

Officials familiar with the findings said the rankings largely capture the fiscal framework shaped during the BRS tenure, when large-scale investments in irrigation, infrastructure, welfare and urban development were undertaken. The steady improvement in expenditure quality and revenue mobilisation during that period helped Telangana remain among the better-performing States in fiscal management, the report indicated.