By Saikat Nandi
While aggregate state capex is budgeted to grow at a compounded annual growth rate (CAGR) of 35% over FY21-23, past trends show that states tend to over-budget capital expenditure and deliver about 19% lower than the budgeted numbers.
States like Uttar Pradesh (accounting for 16% of the aggregate state capex) and Maharashtra (9%) have budgeted capex growth at 54% and 48% CAGR, respectively, over FY21-23.
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An analysis by BNP Paribas shows that the growth rate looks higher because of a low base, as the FY19-21 period witnessed a decline in capex.