States' capital outlay to accelerate to 10-12% on Centre support in FY27, urban infra to lead: Crisil

The Economic Times · PTI · 2026-11-06 12:18 UTC

States' capital expenditure is projected to rise 10-12% to around Rs 8.5 lakh crore in FY27, driven by higher central assistance and greater fiscal flexibility, according to a Crisil Ratings report. Increased allocation under the SASCI scheme is expected to support infrastructure spending, particularly urban development, roads and bridges.

Mumbai: States' capital expenditure is expected to increase 10-12 per cent to about Rs 8.5 lakh crore in FY27, driven by higher central assistance and improved fiscal flexibility, a report said on Friday.

The report estimates that they will achieve around 84 per cent of their aggregate budgeted capital outlay, compared with 82 per cent in the previous fiscal year.

Capital outlay growth is expected to surpass the 8.6 per cent recorded last fiscal year, supported by a 33 per cent increase in allocation under the Special Assistance to States for Capital Investment (SASCI) scheme to Rs 2 lakh crore.

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