Key Points
State governments' capex outlay to rise upto 18% this year without impacting deficit that will be funded by healthy GST collections, devolution from centre and interest free loans, according to ratings firm Crisil...
Combined capital outlay of Indias top 18 states is seen 18-20 percent higher on-year this fiscal on the back of 14 percent growth in fiscal 2023..
The increase in spending will be supported by healthy goods and services tax (GST) collection, devolution from the central government (share in central taxes, or SICT), and an higher allocation of Rs 1.3 lakh crore in the form of interest-free loans1 to all the states for capital expenditure (capex)...
This fiscal, states have budgeted a strong 43% increase in their capital outlays from fiscal 2023 levels said Anuj Sethi, Senior Director, CRISIL Ratings..
In terms of sectoral mix, on average over the past five years, transport (especially roads and bridges) has 22-26% share in the total capital outlays of states, followed by irrigation (15-20%), water supply & sanitation 15-20%..
