Centre Achieves 98 Per Cent Of FY26 Capex Target
ROADS & HIGHWAYS

Centre Achieves 98 Per Cent Of FY26 Capex Target

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.

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.

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