States’ capex likely grew 10% in April-October

CAPITAL EXPENDITURE BY state governments likely grew 10% on-year in the first seven months of the current financial year, but revenue expenditure growth was a modest 4% during the period.

- PRASANTA SAHU

A review of 18 states’ finances by FE showed that their capex in April-October stood at ₹3 lakh crore compared with ₹2.7 lakh crore in the year-ago period. These states’ capex had contracted by 7% in April-October a year ago, due to election-related pauses.

The Centre’s capex rose 40% on year in H1FY26 compared with a 15% on year contraction in H1FY25 due to election-related pauses.