Centre Achieves 98 Per Cent Of FY26 Capex Target

11 May 2026 CW Team

The capex push was led by the Railway Board and the National Highways Authority of India, which together accounted for 47 per cent of total capital expenditure in FY26. The Railway Board invested Rs 2.6 tn and the National Highways Authority of India spent Rs 2.4 tn. The Centre also nearly fully utilised the Rs 1.5 tn earmarked for 50-year interest-free capex loans to states for FY26.

In FY25 the Centre achieved capital expenditure of Rs 10.52 tn against the revised estimate of Rs 10.18 tn and the budget estimate of Rs 11.11 tn. For the past two years the Centre's capex has remained around three per cent of GDP, a level regarded as appropriate under fiscal management norms and supportive of economic growth. Including capital grants to states, capital expenditure is estimated at three point nine per cent in the FY26 revised estimate.

For FY27 the central government has budgeted capital expenditure to rise 11.5 per cent to Rs 12.2 tn, while effective capital expenditure, which includes grants-in-aid to states for asset creation, is projected to grow 22.1 per cent to Rs 17.1 tn. The fiscal consolidation path has been framed through containment of revenue expenditure at 10.5 per cent of GDP in FY27 down from 10.8 per cent in the FY26 revised estimate while maintaining capital expenditure at three point one per cent of GDP. During April to February of FY26, for which official data is available, the government's capital expenditure grew 14.5 per cent year on year while revenue expenditure excluding interest payments and major subsidies contracted six per cent.

The Centre achieved Rs 10.75 trillion (Rs 10.75 tn), or 98 per cent, of its revised capital expenditure target of Rs 10.96 trillion (Rs 10.96 tn) for FY26, a senior official said. The Budget presented on February one had revised the FY26 capex target downward from the budget estimate of Rs 11.21 trillion (Rs 11.21 tn). The official said the capex achievement was very good and that momentum in asset creating expenditure continued. The capex push was led by the Railway Board and the National Highways Authority of India, which together accounted for 47 per cent of total capital expenditure in FY26. The Railway Board invested Rs 2.6 tn and the National Highways Authority of India spent Rs 2.4 tn. The Centre also nearly fully utilised the Rs 1.5 tn earmarked for 50-year interest-free capex loans to states for FY26. In FY25 the Centre achieved capital expenditure of Rs 10.52 tn against the revised estimate of Rs 10.18 tn and the budget estimate of Rs 11.11 tn. For the past two years the Centre's capex has remained around three per cent of GDP, a level regarded as appropriate under fiscal management norms and supportive of economic growth. Including capital grants to states, capital expenditure is estimated at three point nine per cent in the FY26 revised estimate. For FY27 the central government has budgeted capital expenditure to rise 11.5 per cent to Rs 12.2 tn, while effective capital expenditure, which includes grants-in-aid to states for asset creation, is projected to grow 22.1 per cent to Rs 17.1 tn. The fiscal consolidation path has been framed through containment of revenue expenditure at 10.5 per cent of GDP in FY27 down from 10.8 per cent in the FY26 revised estimate while maintaining capital expenditure at three point one per cent of GDP. During April to February of FY26, for which official data is available, the government's capital expenditure grew 14.5 per cent year on year while revenue expenditure excluding interest payments and major subsidies contracted six per cent.

Products

19 Jun 2026

REHAU Opens Interior Solutions Experience Centre in Gurgaon

REHAU Kitchen has partnered with Third Space Collective to launch a new experience centre in Gurgaon, strengthening its presence in India's growing premium interiors market.Spread across 3,400 sq. ft., the facility showcases a range of interior applications including kitchens, wardrobes, TV units, bar units and storage solutions, offering homeowners, architects and interior designers an opportunity to explore engineered interior products and material innovations under one roof.The collaboration is aimed at making advanced interior solutions more accessible while addressing growing consumer dem..

Resources

19 Jun 2026

Sky City Mall Marks Father's Day with Digital Film

Sky City Mall, Oberoi Realty's newest retail destination, has launched a Father's Day digital film that celebrates the bond between fathers and their children while highlighting the evolving role of malls as experience-led destinations.The campaign reflects the growing importance of retail destinations as spaces where shopping, dining, entertainment and social interactions come together to create memorable experiences for families. Through the film, Sky City Mall positions itself as a venue for meaningful moments and celebrations beyond traditional retail activity.The narrative follows a fathe..

Real Estate

19 Jun 2026

YKK India to Set Up Manufacturing Facility at Origins Chennai

Mahindra Industrial Park Chennai Limited (MIPCL), a joint venture between Mahindra World City Developers and Sumitomo Corporation of Japan, has announced that YKK India will establish a new manufacturing facility at Origins by Mahindra, Chennai.According to YKK India, the proposed facility will be its third manufacturing plant in the country and will span approximately 149,936 sq. m. The company plans to invest US$150 million in the project, which is expected to be completed by February 2028.YKK India, a manufacturer of fastening products serving the apparel, textile and industrial sectors, wi..