Govt has scope to increase capex in FY26: Icra

The government has scope to increase the total capital expenditure (capex) by ₹80,000 crore to ₹1.2 trillion, thanks to the revenue buffer created by higher than expected surplus transfer from the Reserve Bank of India, rating agency Icra said on Tuesday.

- Ruchika Chitravanshi

"If the entire ₹80,000 crore goes for additional capex, it would push up the headline figure to nearly ₹12 trillion and take its growth to a healthy 14.2 per cent from the current 6.6 per cent," the report said.

Capex for April 2025 surged 61 per cent year-on-year (Y-o-Y) to ₹1.6 trillion, according to the latest data by the Controller General of Accounts (CGA). This was 14.3 per cent of the FY26 Budget Estimates (BE) against 9.4 per cent of FY25 provisional estimates. Icra said this was well above the average monthly required rate of ₹90,000 crore.