FY26 general govt capex likely ~5% of GDP, below FY25: Report

The general government capital expenditure (capex) as a share of GDP in FY26 is likely to remain around 5 per cent, which is lower than 5.1 per cent in FY25P and much below the FY24 peak of 5.4 per cent, according to a report by Emkay Research. The report highlighted that public capex growth has remained strong in the first five months of FY26.

- TDG NETWORK NEW DELHI

During this period, the Centre has already spent around 39 per cent of its budgeted capital outlay, recording growth of over 43 per cent. It stated "if the trend sustains, FY26 general government capex/GDP is likely to hit approx. 5 per cent, although it may still fall short of that in FY25P (5.1 per cent) and log much lower than the FY24 peak of 5.4 per cent". States have also shown healthy momentum, with their capex tracking 14 per cent growth, though this is below their ambitious budget estimate of 30 per cent growth