States to miss fiscal capex targets
ROADS & HIGHWAYS

States to miss fiscal capex targets

According to an analysis, it is anticipated that several states will fall short of achieving their capital expenditure targets for the ongoing fiscal year due to elections and a decline in revenue. Aditi Nayar, Chief Economist at Icra Ratings, mentioned that a significant reduction in revenue receipts will result in a substantial contraction in state capital expenditure. She noted that during the first half of FY24, state capital expenditure reached a record 35 per cent.

Nayar stated that to meet their Budget estimates, 21 states, for which capital expenditure and other macro data are available, will need to ensure that the capital expenditure run rate is maintained at 28 per cent in the second half. However, she expressed skepticism about this possibility, citing the likelihood of the model code of conduct taking effect in the March quarter before the general elections. During the April-September period, the combined revenue and fiscal deficits of these 21 states increased to Rs 700 billion and Rs 3.5 trillion, respectively, from Rs 500 billion and Rs 2.4 trillion, respectively, in the year-ago period.

It's important to note that the report excludes Arunachal Pradesh, Assam, Goa, Manipur, Meghalaya, Mizoram, and Nagaland.

According to an analysis, it is anticipated that several states will fall short of achieving their capital expenditure targets for the ongoing fiscal year due to elections and a decline in revenue. Aditi Nayar, Chief Economist at Icra Ratings, mentioned that a significant reduction in revenue receipts will result in a substantial contraction in state capital expenditure. She noted that during the first half of FY24, state capital expenditure reached a record 35 per cent. Nayar stated that to meet their Budget estimates, 21 states, for which capital expenditure and other macro data are available, will need to ensure that the capital expenditure run rate is maintained at 28 per cent in the second half. However, she expressed skepticism about this possibility, citing the likelihood of the model code of conduct taking effect in the March quarter before the general elections. During the April-September period, the combined revenue and fiscal deficits of these 21 states increased to Rs 700 billion and Rs 3.5 trillion, respectively, from Rs 500 billion and Rs 2.4 trillion, respectively, in the year-ago period. It's important to note that the report excludes Arunachal Pradesh, Assam, Goa, Manipur, Meghalaya, Mizoram, and Nagaland.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Vedanta Metal Bazaar Expands to Global Markets

Vedanta Aluminium has expanded its digital e-commerce platform, Vedanta Metal Bazaar, to international markets, enabling overseas customers to order and purchase aluminium products online.The platform will now be available to buyers across Asia, Europe, Africa and the Americas, providing a digital gateway for export transactions with 24x7 access.In FY26, Vedanta Metal Bazaar processed transactions worth nearly $4.1 billion, or over Rs 380 billion, and fulfilled more than 23,000 orders. The platform is also used regularly by more than 550 MSMEs in India alongside large OEM customers.The export ..

Next Story
Infrastructure Urban

Ramky Infrastructure Q1 FY27 Revenue Rises 24.3%

Ramky Infrastructure Limited reported a 24.3% year-on-year increase in consolidated revenue from operations to Rs 471.2 crore for Q1 FY27, compared with Rs 3.79 billion in the corresponding quarter of FY26.Standalone revenue from operations rose 27.5% YoY to Rs 4.51 billion from Rs 3.54 billion, while total standalone income increased 35% to Rs 5.32 billion.Consolidated profit before tax stood at Rs 540.9 million during the quarter. The company highlighted a sharp sequential improvement compared with a pre-exceptional loss of Rs 190.1 million in Q4 FY26.Two of the three projects awarded during..

Next Story
Technology

LTTS Launches AgenticIQ AI Platform for Engineering

L&T Technology Services (LTTS) has launched AgenticIQ, an end-to-end agentic AI platform designed for engineering and manufacturing organisations.The platform is aimed at helping enterprises move beyond isolated AI pilots by enabling autonomous, multi-agent workflows across engineering, product development, manufacturing, industrial operations and customer experience.AgenticIQ is built on LTTS’ Engineering Intelligence portfolio and converts existing engineering capabilities into specialised, reusable AI agents. Its planning-first architecture is embedded into engineering and production ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement