THE CENTRE, STATES, and central public sector enterprises (CPSEs) will likely invest around ₹27.5 lakh crore in 2025-26, a sub-10% growth in public capex for the second consecutive year. This comes after registering 15-16% growth in such asset-creating spending by the government sector between FY22 and FY24, according to an FE analysis based on information gathered from different sources.
The Centre is unlikely to go for a big increase in its budgetary capital expenditure target for the next fiscal year. It may peg the target at around ₹11 lakh crore for the next fiscal, which is the budget estimate (BE) for the current year.
For 2024-25, the Centre had set a capex target of ₹11.11 lakh crore, a 17% increase over ₹9.5 lakh crore achieved in FY24. Officials, however, reckon that actual spending will be around ₹10.2 lakh crore during the year.
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