States' capital outlay seen rising 10-12% in FY27: Crisil
In short
States’ capital spending is projected to rise 10-12% to about Rs 8.5 lakh crore in FY27, according to a Crisil Ratings report. The report says higher central support and more fiscal flexibility will help push spending higher.
Urban development, roads and bridges are expected to get the biggest share of this spending.
What the reporting says
States’ capital expenditure is projected to rise 10-12% to around Rs 8.5 lakh crore in FY27, according to a Crisil Ratings report. The report says higher central assistance and greater fiscal flexibility should drive the increase, with more allocation under the SASCI scheme supporting infrastructure spending. Urban development, roads and bridges are expected to lead the outlay. The forecast points to stronger state-led investment activity next fiscal year.
Why it matters
Crisil Ratings projects that state capital expenditure will increase 10-12% to about Rs 8.5 lakh crore in FY27, helped by higher central assistance, greater fiscal flexibility and more allocation under the SASCI scheme. The report expects urban development, roads and bridges to lead spending. The projection matters for infrastructure-related activity and for state finances, because it signals stronger public capex next fiscal year.