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States’ Capital Spending to Rise
June 27 , 2025
15 hrs 0 min
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- Capital expenditure (capex) by 26 Indian states will increase to ₹10.2 trillion in FY26 from ₹8.7 trillion in FY25.
- Just over five states will contribute nearly 50% of this total capex.
- Uttar Pradesh alone will account for 16.3% of total capital spending.
- In FY25, the top five capex contributors were Uttar Pradesh (16.9%), Maharashtra (10.9%), Gujarat (8.1%), Madhya Pradesh (7.5%), and Odisha (6.4%).
- Nagaland, Himachal Pradesh, and Sikkim together will make up only 0.4% of the FY26 capital spending.
- Aggregate receipts across the 26 states are forecast at ₹69.4 trillion in FY26.
- It is a 10.6% increase over FY25.
- Revenue receipts are expected to grow by 12.3%.
- Capital receipts are projected to rise by 6.6%.
- Madhya Pradesh, Karnataka, and Rajasthan are each projected to contribute 5.9%.
- Tamil Nadu, a top contributor in FY25, is not among the top five in FY26.
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