States Likely Lifted Q1FY26 Capex 30% Amid Slowdown

16 states' capex jumped to ₹95,823 crore

- PRASANTA SAHU

STATES' CAPITAL EXPENDITURE likely rose by a solid 30% year-on-year in April-June of the current financial year, reflecting the broader public capex push to support economic activity amid global uncertainties.

A review of the finances of 16 states by FE showed that their capex in Q1 FY26 rose to ₹95,823 crore, compared with ₹73,476 crore in the year-ago quarter. These states had seen a 22% contraction in capex during Q1 FY25, largely due to election-related pauses.