+
Capital outlay of top 18 states to rise 7-9% this fiscal: Crisil
ECONOMY & POLICY

Capital outlay of top 18 states to rise 7-9% this fiscal: Crisil

The capital outlay of India’s leading 18 states is expected to grow by 7-9% to approximately Rs 7.2 trillion in FY 2024-25, according to Crisil Ratings. This increase builds on a strong 27% rise in FY 2023-24, when the total outlay reached Rs 6.7 trillion. Key sectors driving this expansion include transport, water supply, sanitation, housing, and urban development, with modest growth projected for irrigation.

These 18 states account for nearly 94% of India’s total capital outlays, with this year’s outlay expected to remain at 2.4% of gross state domestic product (GSDP), consistent with last year but above the 2.0-2.3% range observed between FY 2018 and 2023.

Crisil Ratings noted that states will have the fiscal capacity to sustain these capital expenditures, supported by increased Goods and Services Tax (GST) collections, higher shares of central taxes, and interest-free loans for capital spending from the central government. This fiscal year, the Centre has raised its allocation for interest-free capex loans to states from Rs 1.3 trillion to Rs 1.5 trillion, with 80% of last year's funds successfully disbursed to state governments.

Anuj Sethi, Senior Director, Crisil Ratings, commented, "We anticipate a 7-9% increase in capital outlay, allowing states to meet around 90% of their budgeted targets this fiscal. This would exceed the 82-84% fulfilment rate seen between fiscals 2018 and 2023." (ET)

The capital outlay of India’s leading 18 states is expected to grow by 7-9% to approximately Rs 7.2 trillion in FY 2024-25, according to Crisil Ratings. This increase builds on a strong 27% rise in FY 2023-24, when the total outlay reached Rs 6.7 trillion. Key sectors driving this expansion include transport, water supply, sanitation, housing, and urban development, with modest growth projected for irrigation. These 18 states account for nearly 94% of India’s total capital outlays, with this year’s outlay expected to remain at 2.4% of gross state domestic product (GSDP), consistent with last year but above the 2.0-2.3% range observed between FY 2018 and 2023. Crisil Ratings noted that states will have the fiscal capacity to sustain these capital expenditures, supported by increased Goods and Services Tax (GST) collections, higher shares of central taxes, and interest-free loans for capital spending from the central government. This fiscal year, the Centre has raised its allocation for interest-free capex loans to states from Rs 1.3 trillion to Rs 1.5 trillion, with 80% of last year's funds successfully disbursed to state governments. Anuj Sethi, Senior Director, Crisil Ratings, commented, We anticipate a 7-9% increase in capital outlay, allowing states to meet around 90% of their budgeted targets this fiscal. This would exceed the 82-84% fulfilment rate seen between fiscals 2018 and 2023. (ET)

Next Story
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?