States' capex likely up 9% in FY25

STATES' CAPITAL EXPENDITURE likely rose by 9% on-year in 2024-25, compared with a 27% growth seen in 2023-24, as they sought to rein in fiscal deficit at 3% of their respective Gross State Domestic Product (GSDP) amid a moderation in tax revenue growth.

- PRASANTA SAHU

A review of the finances of 16 states by FE showed that their capex in FY25 rose to ₹6.65 lakh crore compared with ₹6.09 lakh crore in the previous year. These states are: Madhya Pradesh, Andhra Pradesh, Uttar Pradesh, Maharashtra, Tamil Nadu, Gujarat, Haryana, Karnataka, Kerala, Odisha, Punjab, Rajasthan, Telangana, Assam, Chhattisgarh and Uttarakhand.