Explain how the Fiscal Health Index (FHI) can be used as a tool for assessing the fiscal performance of states in India. In what way would it encourage the states to adopt prudent and sustainable fiscal policies?

Model Answer Approach

1. Decode demand: Identify the directive verb (discuss / examine / critically analyse) and bound the scope to Fiscal Policy.
2. Intro (40–50 words): Define the core concept; anchor with a definition, data point, or constitutional/historical reference.
3. Body: 2–3 thematic sub-heads with crisp points, examples and counter-arguments. Add a relevant case study or committee/report.
4. Conclusion (30–40 words): Forward-looking — recommendations, way forward, or a constitutional/ethical anchor.

Structure Checklist

• ✓ Definition / context in intro
• ✓ Minimum 1 data point or report
• ✓ Multi-dimensional arguments
• ✓ Counter-view / limitations
• ✓ Diagram, flowchart or map (if applicable)
• ✓ Way forward in conclusion

Keywords to Use

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