# 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.
- Title: States' Capex Grows 23.4% in H1 FY27 · Financialexpress
- Summary: States' capital expenditure rose 23.4% year-on-year to Rs 1.51 lakh crore in H1 FY27, while revenue spending stayed restrained.
- Keywords: states, capital expenditure, revenue spending, tax collection, infrastructure, capex loans, Financialexpress
- Source: Financialexpress — https://financialexpress.com/policy/economy-states-capex-keeps-momentum-in-h1-revenue-spending-curbed-4380242
- Author: Prasanta Sahu
- Published: 2026-11-09T13:20:33+00:00
- Read time: 1 min
- Topics: states, capital expenditure, revenue spending, tax collection, infrastructure, capex loans, business, money, news
## 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.
## Key takeaway

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.