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FY26 Capex Loan Outlay May Go Up After Mid-Year Review
Mint New Delhi
|July 23, 2025
Mid-year review is slated for September-October; last revision had seen a hike of about 35%
The Centre is considering a higher allocation for FY26 under its 50-year interest-free capital expenditure loan for states, the Special Assistance to States for Capital Expenditure (SASCE) scheme, following a pickup in fund sanctions early in the current fiscal, two people familiar with the development said.
A final decision, along with the size of the increase, is expected after the mid-year review in September-October. The last revision had seen a hike of around 35%.
The SASCE scheme, launched in FY21 to stimulate post-pandemic recovery through state-led infrastructure investment, has become a key instrument for boosting public capital expenditure.
Allocations have remained unchanged over the last two years at ₹1.5 trillion for both FY25 and FY26, after being increased from ₹1.1 trillion in FY24.
However, the pace of utilization this year has been swift.
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