States’ capital expenditure (capex) utilisation fell below last year’s level in the first five months of 2026-27 (FY27), yet remained the third highest in the last six years, according to an analysis of data from the Comptroller and Auditor General (CAG).
In April-August, 23 states — data for which is available — spent ₹2.4 trillion, or 21.21 per cent of their combined capex budget estimate (BE) of ₹11.34 trillion for the year. They had used 21.73 per cent in the same period of FY26 and 23.89 per cent in FY24 — the highest five-month figure in six years.
FY27’s pace was, however, ahead of FY25 (20.90 per cent), FY22 (20.68 per cent) and FY23 (19.98 per cent).
In absolute terms, states spent 10.2 per cent more than the ₹2.18 trillion they spent in the April-August period of FY26, but their combined capex budget also grew by 13 per cent from ₹10.04 trillion budgeted for FY26.
Analysis further revealed that 14 of the 23 states raised their utilisation rate for the period from a year ago, while the remaining nine saw it decline. Further, 11 states spent less than 20 per cent of their budgeted capex during the period.
Kerala, which went to the polls in April, led the charts. It spent 53.14 per cent of its ₹19,718 crore capex budget, up from 38.82 per cent a year ago. Himachal Pradesh followed at 46.49 per cent, then Assam, which also held elections in April (41.06 per cent). Bihar (40.76 per cent) and Andhra Pradesh (28.17 per cent) came next.
At the bottom was West Bengal, which held Assembly elections in April. It had used just 7.07 per cent of its capex budget during April-August, down from 11.97 per cent a year ago.
Further, Uttar Pradesh had the largest capex budget among states for FY27, at ₹2.16 trillion, but by August it had used only 10.05 per cent of it (₹21,742 crore), down from 12.95 per cent a year ago. It was followed by Tripura at 10.37 per cent.
Several states that spent quickly in FY26 have slowed sharply. Haryana’s utilisation fell to 24.02 per cent from 37.72 per cent, Telangana’s to 26.26 per cent from 39.28 per cent, Nagaland’s to 15.69 per cent from 32.14 per cent, and Jharkhand’s to 14.49 per cent from 23.74 per cent.
Capital spending nonetheless continued to trail the states’ revenue expenditure. In April-August, the 23 states spent ₹17.32 trillion on revenue expenditure, or 31.73 per cent of the ₹54.59 trillion they budgeted for the year.
Himachal Pradesh led on revenue spending at 45.47 per cent of its budget. Andhra Pradesh (42.84 per cent), Telangana (39.41 per cent) and Kerala (38.29 per cent) came next.
On the other hand, Maharashtra was the lowest at 25.53 per cent, followed by Bihar (26.48 per cent) and Jharkhand (27.49 per cent).
Additionally, states collected ₹15.08 trillion in tax revenue, or 36.46 per cent of their annual target of ₹41.36 trillion.
Gujarat led with 42.3 per cent. Haryana (41.70 per cent), Assam (41.11 per cent) and Karnataka (40.02 per cent) also crossed 40 per cent. Bihar was the lowest: it had collected only 20.36 per cent of its ₹2.24 trillion tax target.
