Capital expenditure by state governments likely grew 14% year-on-year in the first five months of the current financial year, reflecting a moderation in the monsoon period of July-August.

Their capex had grown 30% in the April-June period of the current fiscal.

A review of 19 states’ finances by FE showed that their capex in April-August rose to Rs 1.98 lakh crore, compared with Rs 1.75 lakh crore in the year-ago period. Their capex had contracted by 6% in April-August of FY25 due to election-related pauses.

Borrowing rises as tax revenue moderates

Borrowing and other liabilities of these states — Odisha, Uttar Pradesh , Maharashtra , West Bengal, Madhya Pradesh, Andhra Pradesh, Tamil Nadu, Gujarat, Haryana, Karnataka, Kerala, Telangana, Assam, Punjab, Rajasthan, Chhattisgarh, Jha

See Full Page