Explanation:

Only statement 1st is correct.

• The Chairman of the 16th Finance Commission, launched the inaugural issue of NITI Aayog’s report titled “Fiscal Health Index (FHI) 2025” in New Delhi recently.

About Fiscal Health Index (FHI) 2025

• It is aimed to evolve an understanding of the fiscal health of states in India.

• Statement 1 is correct: The report uses data sourced from the Comptroller and Auditor General of India (CAG) to calculate the Fiscal Health Index.

• Coverage: It covers eighteen major states that drive the Indian economy in terms of their contribution to India’s GDP, demography, total public expenditure, revenues, and overall fiscal stability. 

• Statement 2 is incorrect: The Fiscal Health Index 2025 is the first report of its kind. It was released in January 2025.

• Sub Indices: The study identifies five major sub-indices to calculate the composite FHI index and assess states’ fiscal health. 

• The five major sub-indices are Quality of Expenditure, Revenue Mobilization, Fiscal Prudence, Debt Index, and Debt Sustainability. 

• Statement 3 is incorrect: Odisha is the top-performing state in the Fiscal Health Index 2025, with the highest overall index score of 67.8.

Hence option 1st is correct.