Indiana Achieves $676M Budget Surplus, Low Debt, and AAA Credit Rating

State Comptroller highlights Indiana's fiscal discipline and long-term financial stability

Published on Feb. 4, 2026

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Indiana's State Comptroller Elise Nieshalla released the 2025 State of Indiana's Financial Report, which showed the state achieved a $676 million budget surplus, has well-funded pensions, healthy cash reserves, and a AAA credit rating - making Indiana a 'long-term, reliable model of fiscal responsibility'.

Why it matters

Indiana's strong fiscal management and balanced budgets over the past two decades have allowed the state to maintain low debt levels, build up substantial reserves, and earn the highest possible credit rating from all three major agencies. This positions Indiana well to weather economic downturns and invest in priorities that benefit Hoosiers.

The details

Indiana's general revenues totaled $26.5 billion in fiscal 2025, a 6.8% increase over the prior year, with income tax revenues rising 6.9% despite ongoing tax rate reductions. Total revenues reached $53.8 billion, while expenses were $51.9 billion, fulfilling the state's constitutional duty to maintain a balanced budget. Indiana's net position grew to $33.5 billion, and the fiscal year closed with a $676 million surplus and $2.5 billion in reserves, equal to 11% of State General Fund expenditures.

  • Indiana released its 2025 State Financial Report on February 4, 2026.

The players

Elise Nieshalla

Indiana State Comptroller who released the 2025 State of Indiana's Financial Report.

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What they’re saying

“Commonsense fiscal leadership over two decades continues to reap rewards for Indiana as we have the 4th lowest debt per capita among states, well‑funded pensions, healthy cash reserves and a AAA credit rating. We have become a long-term, reliable model of fiscal responsibility.”

— Elise Nieshalla, Indiana State Comptroller (wishtv.com)

What’s next

The Indiana Transparency Portal will expand this year with a new federal funds dashboard, making it easier for Hoosiers to see how those dollars are spent.

The takeaway

Indiana's disciplined fiscal management over the past 20 years has allowed the state to build up substantial financial reserves, pay down debt, and maintain the highest possible credit rating. This positions Indiana as a model of long-term fiscal responsibility that can weather economic challenges and invest in priorities that benefit its residents.