State Finances and Coordination

TThe State Finance Division seeks to strengthen coordination with States and serve as a single point of contact for all matters pertaining to state finances of the States.
The Division seeks to provide tailored insights and inputs on the state finances based on database of key fiscal parameters for greater transparency and an appropriate policy mix in making informed decisions.

• The Division has been entrusted with the responsibility of maintaining a State-wise database on macroeconomic, financial, fiscal and social indicators; assessing the financial health of the States, including the assessment of transfers from the Centre to the States; and fostering cooperative federalism through structured support and initiatives.  

• The Division is managing a web portal viz. “NITI NCAER States Economic Forum” portal, developed in collaboration with the National Council of Applied Economic Research (NCAER) and 16th Finance Commission. The portal serves as a comprehensive repository of data on social, economic and fiscal parameters, research reports, papers, and expert commentary on State Finances for a period of about 30 years. The portal was launched by the Hon’ble Finance Minister, Ms. Nirmala Sitharaman on 1st April, 2025 in New Delhi. It offers a wealth of data and analytical tools for in-depth research studies, informed debates and discussions on the economic and fiscal challenges facing the Indian States.  

• The Division is committed towards providing inputs in the formulation of policies and reforms in fiscal matters.   

• The Division engages with the leading institutions and think tanks facilitating knowledge support to States on their fiscal and financial matters. 

• The Division also coordinates with different Ministries/Departments and Divisions within NITI Aayog for action taken on issues raised by the States on fiscal and financial matters.  

• The Division also provides inputs for Hon’ble Prime Minister visits to States/UTs; and meetings/interactions of the Vice Chairman/Members/CEO, NITI Aayog.  

• Cross States analysis of key macro-economic indicators of the States is also undertaken which is being used in regular interactions/meetings with the State Governments/UTs to provide inputs for future growth.

National Council of Applied Economic Research (NCAER).

Department of Expenditure, Ministry of Finance.

• ‘NITI NACER States Economic Forum’ portal - a comprehensive repository to house state-level research, data, reports, papers, and expert commentary, and related information on the macro and fiscal landscape of each state including – demography; economic growth; socio economic indicators; public finances; and state fiscal rules.
• As an annual exercise, the Division prepares States’ fiscal health profiles, which are an effective at-a-glance summary of their financial health. The same is being prepared for FY 2025–26 on the basis of State budgets.