UPSC Prelims Practice Questions — NITI Aayog launches second annual edition of “Fiscal Health Index”
Q1. In NITI Aayog's Fiscal Health Index, which one of the five sub-indices is designed primarily to capture the extent to which a State directs its spending towards capital outlay and developmental rather than non-developmental expenditure?
- A. Quality of Expenditure
- B. Revenue Mobilisation
- C. Fiscal Prudence
- D. Debt Sustainability
Q2. With reference to the sub-indices used in the first (2025) and second (2026) editions of NITI Aayog's Fiscal Health Index, consider the following statements:
1. Both editions assess States on the same set of five sub-indices.
2. Debt Index and Debt Sustainability are maintained as two distinct sub-indices in the framework.
3. Revenue Mobilisation was introduced as a sub-index only in the 2026 edition, replacing Fiscal Prudence.
Which of the statements given above is/are correct?
- Both editions assess States on the same set of five sub-indices.
- Debt Index and Debt Sustainability are maintained as two distinct sub-indices in the framework.
- Revenue Mobilisation was introduced as a sub-index only in the 2026 edition, replacing Fiscal Prudence.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q3. How many major (General Category) States are ranked in the composite ranking of NITI Aayog's Fiscal Health Index?
Q4. With reference to the editions and coverage of NITI Aayog's Fiscal Health Index, consider the following:
1. The first edition is based on Financial Year 2022-23 data.
2. The second edition is based on Financial Year 2023-24 data.
3. The second edition was released in 2026.
4. The first edition was released in 2023.
Which of the statements given above are correct?
- The first edition is based on Financial Year 2022-23 data.
- The second edition is based on Financial Year 2023-24 data.
- The second edition was released in 2026.
- The first edition was released in 2023.
- A. 1, 2 and 3
- B. 1 and 4 only
- C. 2 and 4 only
- D. 1, 2, 3 and 4
Q5. Which one of the following best describes the institutional status of NITI Aayog, which publishes the Fiscal Health Index?
- A. A non-statutory, non-constitutional executive body created by a Cabinet resolution
- B. A statutory body established by an Act of Parliament
- C. A constitutional body established under a specific Article of the Constitution
- D. An autonomous statutory regulator under the Ministry of Finance
Q6. With reference to NITI Aayog, consider the following statements:
1. It was constituted on 1 January 2015.
2. It replaced the erstwhile Planning Commission.
3. The Prime Minister is its ex-officio Chairperson.
4. It allocates Plan funds and grants to the States.
Which of the statements given above are correctly identified?
- It was constituted on 1 January 2015.
- It replaced the erstwhile Planning Commission.
- The Prime Minister is its ex-officio Chairperson.
- It allocates Plan funds and grants to the States.
- A. 1, 2 and 3
- B. 1, 2 and 4
- C. 2, 3 and 4
- D. 1, 2, 3 and 4
Q7. With reference to the data used in NITI Aayog's Fiscal Health Index, consider the following statements:
1. Both editions draw fiscal data from the accounts compiled by the Comptroller and Auditor General of India.
2. Reliance on CAG-audited Finance Accounts gives the Index higher data fidelity than self-reported State data.
3. The FHI is a statutory index whose rankings are formally certified by the CAG.
Which of the statements given above is/are correct?
- Both editions draw fiscal data from the accounts compiled by the Comptroller and Auditor General of India.
- Reliance on CAG-audited Finance Accounts gives the Index higher data fidelity than self-reported State data.
- The FHI is a statutory index whose rankings are formally certified by the CAG.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q8. The Comptroller and Auditor General of India, whose accounts underpin the Fiscal Health Index, is established under which Article of the Constitution?
- A. Article 148
- B. Article 280
- C. Article 324
- D. Article 76
Q9. With reference to the release of the second edition of the Fiscal Health Index, consider the following:
1. Suman Bery, who released it, holds the office of Vice-Chairman of NITI Aayog.
2. Nidhi Chhibber holds the office of Chief Executive Officer of NITI Aayog.
3. The reference year for this edition is Financial Year 2023-24.
4. This edition is the first-ever edition of the Index.
Which of the statements given above are correctly identified?
- Suman Bery, who released it, holds the office of Vice-Chairman of NITI Aayog.
- Nidhi Chhibber holds the office of Chief Executive Officer of NITI Aayog.
- The reference year for this edition is Financial Year 2023-24.
- This edition is the first-ever edition of the Index.
- A. 1, 2 and 3
- B. 1, 3 and 4
- C. 2, 3 and 4
- D. 1, 2, 3 and 4
Q10. Which one of the following bodies operationalises and publishes the Fiscal Health Index that ranks States on sub-national fiscal performance?
- A. NITI Aayog
- B. The Department of Economic Affairs, Ministry of Finance
- C. The Finance Commission of India
- D. The Reserve Bank of India
Q11. In which year did NITI Aayog launch the first-ever Export Preparedness Index?
- A. 2018
- B. 2019
- C. 2020
- D. 2021