Gujarat spent a quarter of its total expenditure to build capital assets in FY25, the highest among all major states, reports Saikat Neogi. The Centre’s share of capital expenditure in total expenditure stood at 21.6% during the year.
Madhya Pradesh and Odisha spent 22.2% each on capital expenditure, followed by Assam and Uttar Pradesh. Amongst the laggards, Punjab’s capex was just 5.4% of its total budget, and Haryana’s at 7.8%.
Punjab spent around 18% of its total expenditure as interest payments in FY25, as the state has the highest outstanding liabilities as a share of its gross state domestic product at 46.6%.
However, some states undertake capex also via mechanisms outside the Budget, like Kerala, which uses the body corporate KIIFB for this purpose.