Govt capex-to-GDP seen near 5% in FY26: Report

The general government capital expenditure (capex) in India, measured as a share of GDP, is projected to remain around 5 per cent in FY26, slightly below the FY25 provisional estimate of 5.1 per cent and significantly lower than the FY24 peak of 5.4 per cent, according to a recent report by Emkay Research.

- TBG NETWORK

While the slight decline in the capex-to-GDP ratio may appear modest, it signals a stabilization phase following the peak spending years and reflects the government's measured approach to fiscal prudence amid evolving economic conditions. The report highlighted that public capital expenditure has maintained a robust momentum during the first five months of FY26. During this period, the Centre has already spent approximately 39 per cent of its budgeted capital outlay, marking an impressive growth rate of over 43 per cent compared to the corresponding period in the previous fiscal year.