State capital spending slows in FY27, falling below last year's April-August rate
In the first five months of FY27, Indian states used 21.21% of their capital budgets, a slight dip from 21.73% in the same period last year, according to CAG data.
Data from the Comptroller and Auditor General shows that 23 Indian states have expended roughly ₹2.4 trillion, or 21.21% of the FY27 capital expenditure budget, between April and August, slightly lower than the 21.73% recorded a year earlier. Although the pace slipped, it stays the third-largest in six years, with 14 states increasing their utilisation and nine decreasing it. Kerala led with 53.14% of its ₹19,718 crore budget spent, followed by Himachal Pradesh and Assam.
Conversely, West Bengal used only 7.07% of its allocation. Revenue spending in the same period reached 31.73% of the ₹54.59 trillion budget, with Himachal Pradesh at the forefront. Tax collection covered 36.46% of the national target, led by Gujarat. The figures highlight divergent fiscal performance across states during the early FY27 window.
Why it matters
State capital spending trends signal how quickly governments are investing in infrastructure and can affect economic growth.
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