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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? (15 M)

Overall economic activity remains resilient: RBI Bulletin 📊 ✔️ Robust demand conditions ✔️ CPI inflation below tolerance band ✔️ Strong private consumption & investment ✔️ Financial conditions remain benign 📌 GS Paper 3 – Indian Economy 📌 Key source: RBI Bulletin (Dec) #UPSC #CurrentAffairs #RBIBulletin

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UPSC Mains Focus | GS Paper 2 (Governance) From Lok Adalats ensuring speedy, affordable justice to Supreme Court’s 2025 rulings strengthening disability rights in prisons, this issue connects access to justice, constitutional morality, and humane governance.

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UPSC Mains Focus | GS Paper 2 & GS Paper 3 MGNREGA isn’t just a scheme — it’s a constitutional promise of the Right to Work (Art. 41). Recent debates around its dilution raise critical questions on welfare state, federalism, decentralisation, and social justice. 📌 Mains Angles to Prepare • Rights-based vs allocation-based welfare • Impact on rural livelihoods & wage security • Centre–State fiscal relations (cost-sharing shift) • Gram Sabha, 73rd Amendment & decentralisation • Constitutional morality and inclusive growth A must-link issue for answers on governance reforms, rural economy, and social protection.