International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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Volume 8 Issue 4
July-August 2026

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A Contemporary Analysis of NITI Aayog's Strategies for Mitigating Financial Imbalances

Author(s) Dr. Satyajit Das
Country India
Abstract This paper looks at the changing role of NITI Aayog in finding and fixing problems across Indias federal system. NITI Aayog helps India by looking at the money problems in each state and trying to fix them. The paper checks the tools and policies that NITI Aayog is using like the Fiscal Health Index, state finance briefs and data-quality initiatives. It also looks at the money problems that the states are facing such as a lot of debt having to pay a lot for subsidies and having many schemes.
NITI Aayog is good at using facts to figure out what is going wrong working with groups helping states get better and giving incentives for good performance. But NITI Aayog has some limitations like it can only give advice. Not make decisions about money and it has to work with other groups like the Finance Commission, RBI and GST Council. Sometimes NITI Aayog cannot make things happen because of politics.
The paper gives some ideas on how to make NITI Aayog stronger so it can help reduce problems between the central government and the states and, between the states themselves while still following the rules of the constitution. NITI Aayog can do a job of helping India if it gets a little more power to make decisions and work with the states.
Keywords NITI Aayog; fiscal federalism; financial imbalances; state finances; Fiscal Health Index; policy coordination
Field Sociology > Politics
Published In Volume 8, Issue 4, July-August 2026
Published On 2026-07-27
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E-ISSN 2582-2160
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CrossRef DOI prefix of IJFMR is 10.36948/ijfmr

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