Capital expenditure (capex) by 22 states picked up in the first four months this financial year, with the pace of spending rising to a three-year high, an analysis of monthly accounts released by the Comptroller and Auditor General (CAG) of India shows.
Between April and July, the states utilised 16.11 per cent, or ₹1.72 trillion, of their combined budgeted capex allocation of ₹10.65 trillion for the year.
That is up from the 15.77 per cent they had spent in the same period of FY26, and it is the highest April-July utilisation rate since FY24.
The four-month utilisation rate has moved within a fairly narrow band since FY22 — the earliest year for which the CAG’s monthly accounts series is available.
The weakest utilisation was in FY25, when states spent just 14.71 per cent, followed by FY23 at 15.14 per cent.
The 16.11 per cent recorded this year sits above both, as well as FY26 (15.77 per cent), but remains below the figure for FY22 (16.99 per cent) and the six-year high in FY24 (18.88 per cent).
For this financial year, Kerala led the charts, having utilised 42.36 per cent of its annual capex by the end of July.
It was followed by Himachal Pradesh (27.07 per cent), Punjab (23.39 per cent), Madhya Pradesh (22.94 per cent), and Gujarat (22.03 per cent).
At the other end of the spectrum, West Bengal utilised just 4.04 per cent of its allocation during the period, while Tripura (5.26 per cent) and Meghalaya (5.49 per cent) were also among the weakest performers.
Kerala and West Bengal, at opposite ends of the table, both held Assembly elections during the period. Both had changes in government.
Uttar Pradesh, the most heavily budgeted state with a capex allocation of ₹1.78 trillion, had spent 10.15 per cent by the end of July.
Odisha (12.04 per cent), Tamil Nadu (12.97 per cent), and Karnataka (14.61 per cent) were also among the slower movers.
Capital spending nonetheless continued to trail the states’ routine outgo. Between April and July, the 22 states collectively spent ₹13.39 trillion, or 25.34 per cent, of their combined budgeted revenue expenditure of ₹52.83 trillion for the full year.
Andhra Pradesh recorded the highest revenue spending at 35.50 per cent of full-year target, followed by Himachal Pradesh (35.20 per cent), Telangana (33.70 per cent), and Kerala (29.80 per cent).
Bihar (20.30 per cent), Maharashtra (20.50 per cent), and Karnataka (21.80 per cent) were among the slowest.
In tax revenue, the states collected ₹11.02 trillion between April and July, equivalent to 27.23 per cent of their combined budgeted tax revenue of ₹40.48 trillion for FY27.
Haryana led this category, having realised 32.47 per cent, followed by Gujarat (31.91 per cent), Maharashtra (30.84 per cent), and Karnataka (30.43 per cent).
At the other end, Bihar (19.00 per cent), Tripura (22.23 per cent), and Rajasthan (24.21 per cent) trailed.
