States' Capex Set to Grow 10-12% in FY27
Crisil Ratings expects states' capital spending to rise 10 to 12 per cent to about Rs 8.5 lakh crore in FY27. The growth is expected to come from higher central help and greater fiscal flexibility for states. Urban infrastructure is expected to lead, helped by larger allocations under the SASCI scheme.
Context
Capital expenditure is money governments spend on roads, buildings and other long-term assets, and it is often used to track economic growth. The Centre gives states support for such projects, and SASCI is the central scheme that funds state capital investment.
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