Question

18 Largest States to Spend 18-20% More on Capex: Crisil.

Answer 1

India’s 18 largest states are poised to witness a significant surge in capital expenditure for the fiscal year 2023-24, as per a recent report by Crisil.

The report projects an 18-20% increase in spending compared to the previous year, attributing this growth to factors such as robust goods and services tax collections, stable central government devolution, and the allocation of interest-free loans totaling `1.3 lakh crore to states.

States have budgeted for a remarkable ~43% increase in their capital outlays compared to fiscal 2023 levels. The report suggests that if actual spending aligns with past averages of 82-85% of the budgeted outlay, it could translate to the projected growth.