From Financialexpress · Prasanta Sahu · · 1m 10s
States' Capex Grows 23.4% in H1 FY27
States' capital expenditure rose 23.4% year-on-year to Rs 1.51 lakh crore in H1 FY27, while revenue spending stayed restrained.
In brief
States' capital expenditure rose 23.4% year-on-year to Rs 1.51 lakh crore in H1 FY27, while revenue spending stayed restrained. States' capital expenditure grew 23.4% to Rs 1.51 lakh crore in H1 FY27, led by Assam, Andhra Pradesh, and Karnataka, as revenue spending was restrained. Originally reported by…
States' Capex Growth
States' capital expenditure grew 23.4% year-on-year to Rs 1.51 lakh crore in H1 FY27, led by Assam, Andhra Pradesh, and Karnataka.
Tax Collection Rise
Tax revenue collections rose 17% to Rs 7.41 lakh crore in H1 FY27, with Gujarat leading at 22.8% growth.
State-Specific Capex
Assam and Andhra Pradesh led capex growth with 51.7% and 40.4% increases to Rs 15,437 crore and Rs 16,447 crore respectively.
Revenue Spending Control
Revenue expenditure grew 5.9% to Rs 7.87 lakh crore, down from 8% growth in H1 FY26, indicating prioritization of infrastructure.
Borrowing Decline
States' borrowings and liabilities fell 32% to Rs 1.1 lakh crore, with Karnataka and Jharkhand showing negative balances.
Central Support for Capex
The Centre released two additional tax devolution instalments to boost capex, budgeting Rs 2 lakh crore interest-free 50-year loans for FY27.
In short
States' capital expenditure grew 23.4% to Rs 1.51 lakh crore in H1 FY27, led by Assam, Andhra Pradesh, and Karnataka, as revenue spending was restrained.
