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?

  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.
  • 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?

  • A. 16
  • B. 18
  • C. 20
  • D. 28

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?

  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.
  • 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?

  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.
  • 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?

  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.
  • 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?

  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.
  • 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
  • NRAA-Funded Wild Rice Conservation Project Secures Major Milestone in Assam
    NRAA-Funded Wild Rice Conservation Project Secures Major Milestone in Assam

    The notification of Borjuli site in Sonitpur, Assam as a Biodiversity Heritage Site under an NRAA-funded wild rice conservation project is a named, verifiable fact. Biodiversity Heritage Sites and wild crop genetic resource conservation are tested Prelims topics.

  • India Advances Global Green Hydrogen Leadership under National Green Hydrogen Mission

    Under the National Green Hydrogen Mission (NGHM), a landmark commercial deal for green ammonia and methanol export to Japan (IHI Corporation named) is a concrete outcome. India's green hydrogen ambitions and NGHM are recurring Prelims themes; this adds a factual export-deal hook.

  • NITI Aayog launches report on "Strategic Roadmap for Making Ayurveda Global"
    NITI Aayog launches report on "Strategic Roadmap for Making Ayurveda Global"

    A named NITI Aayog report on Ayurveda's global expansion is testable as a policy document. NITI Aayog reports, AYUSH sector initiatives, and traditional medicine diplomacy are recurring Prelims themes; the report's launch date and authoring body are clean factual hooks.

  • INDIAN NAVAL SHIP TRIKAND RESPONDS TO PIRACY ATTEMPT ON MV GOLDEN ARSENAL IN THE GULF OF ADEN

    A named Indian Navy anti-piracy operation with specific ship (INS Trikand — identified as a stealth frigate), vessel flag state (St. Vincent and the Grenadines), and location (Gulf of Aden) offers testable facts. India's maritime security operations are plausible Prelims hooks but appear occasionally, not frequently.

  • Union Minister Shri Shivraj Singh Chouhan launches nationwide ‘Viksit Bharat – G-Ram G Act’ from Andhra Pradesh with Chief Minister Shri Chandrababu Naidu and Deputy Chief Minister Shri Pawan Kalyan

    A newly named nationwide scheme launched by the Rural Development ministry that explicitly positions itself as moving 'beyond MGNREGA' is potentially testable. However, the excerpt lacks concrete numbers or statutory grounding, keeping it at 3 rather than 4.

  • MANAS: A Digital Shield Against Drugs

    MANAS is a named government digital initiative (national narcotics helpline) with a specific mandate under Nasha Mukt Bharat. Named government portals/helplines with specific functions are tested in Prelims, though this release is a backgrounder without new launch data.

  • VB-G RAM G Act comes into force across the country from today; “A historic day for rural India”: Shivraj Singh Chouhan

    The VB-G RAM G Act (likely a renamed/revised MGNREGA or rural employment guarantee framework) came into force across India from July 1, 2026. Key facts: national launch in Tirupati on July 2; revised wage rates notified with no daily wage below ₹300; national average wage increased by over 10%. A new central Act coming into force with specific wage figures is high-priority Prelims material.

  • India Achieves Major Milestone with Approval of Country’s First PinS Instrument Approach Procedure for Helicopter Operations

    DGCA approved India's first Private Point-in-Space (PinS) Instrument Approach Procedure for helicopter operations, implemented at Undavalli Heliport (developed by AAI). This is a named first in Indian aviation with a specific location and implementing body — classic Prelims material for science/tech and aviation sections.

  • 11 Years of Digital India: Better Healthcare & Digital Markets Making Lives Easier

    This release contains high-quality testable data: Greece is named as the 10th country to adopt UPI; every second real-time digital transaction globally is processed via India's UPI; 13 lakh Anganwadi workers connected via Poshan Tracker covering 9 crore beneficiaries. Multiple concrete facts that are prime Prelims material.

  • India, EU Advance Cooperation on Sustainable Ship Recycling; Three Indian Yards Ready for EU Recognition

    India has a 35.4% global market share in sustainable ship recycling. Three Indian ship-recycling yards are ready for EU recognition. India committed $8 billion to strengthen shipbuilding and recycling, with a target of recycling 16,000 ships. These are specific, verifiable figures in a sector where India leads globally — strong Prelims material on maritime/shipping sector.

  • GAGAN: Navigating India’s Skies with Precision

    Detailed backgrounder on GAGAN (GPS Aided GEO Augmented Navigation), India's Satellite-Based Augmentation System developed jointly by ISRO and Airports Authority of India (AAI). It enhances GPS accuracy for aviation, is certified to international standards, and supports satellite-based landing approaches. GAGAN is a recurring Prelims topic and this backgrounder consolidates key testable facts about its developers, purpose, and certification status.

  • The Hindu

    Latest PIB

    Latest from The Hindu

    Explore