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ARTHA

Public Capex Rebounds

Strongly in FY26, Reinforcing

Growth Momentum

T he Government’s capex-led growth strategy, Trends so Far
adopted in the post-COVID period, has yielded
impressive results in driving infrastructure
creation and supporting economic recovery. Capital According to the data from the Controller General of
Accounts (CGA), monthly government capex expenditure
expenditure growth saw a moderation in FY25, owing has grown at a healthy pace so far. Out of the first six
to a combination of factors such as the general months of the fiscal, five have seen year-on-year growth
elections and an erratic monsoon. However, in the rate above 30 per cent, while one month (July) saw
first half of the current fiscal, the capex momentum contraction, most likely on account of monsoons halting
has gathered pace, with public investment once again construction activities.
emerging as a key growth driver.
On a cumulative basis, Centre’s capital expenditure during
the first half (April–September) of FY26 stood at Rs 5.8
lakh crore as compared to Rs 4.1 lakh crore in the same
period last year which translates into an annual increase of
During H1:FY26, capex 40.0 per cent.
spending by the Central
Government has grown at a With this, 51.8 per cent of the total annual budget allocation
of Rs 11.2 lakh crore for capex has been utilised, a sharp
healthy pace of 40 per cent improvement over the 39.4 per cent spent during the same
on an annual basis period last year.

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