20 states spent 26% of budgeted capital expenditure in H1 FY26: CAG data

States have spent 26.3 per cent of their budgeted capital expenditure in the first half of 2025-26 (FY26), an analysis of monthly account reports of 20 states released by the Comptroller and Auditor General of India (CAG) showed. 

Of the 20 states for which data is available, capital expenditure in 18 states remained below 40 per cent of their budget estimates (BE) in the first half of FY26, with only Telangana surpassing the 50 per cent mark. 

Among the states analysed, Telangana emerged as the frontrunner with the highest utilisation at 60.8 per cent, followed by Kerala at 43.6 per cent, and Madhya Pradesh at 39.9 per cent. 

 

Conversely, states such as Tripura (12.3 per cent), Chhattisgarh (13.5 per cent), and Meghalaya (13.6 per cent) lagged significantly, spending just 12-14 per cent of their budgeted capex.  

This slow pace of capital outlays contrasts starkly with the aggregate BE of nearly ₹9.58 trillion for capex across these 20 states, of which actual spending till September has only touched around ₹ 2.52 trillion. According to the latest Comptroller General of Accounts (CGA) data, the centre’s total capital expenditure for the first half of FY26 stood at 52 per cent of BE. 

States have utilised about 40.2 per cent of their budgeted revenue expenditure in the first half (April–September) of FY26, with the cumulative revenue expenditure of the 20 states reaching ₹18.8 trillion against the BE of ₹46.8 trillion. Andhra Pradesh (48 per cent), Kerala (45.8 per cent), and Punjab (45.7 per cent) recorded relatively high revenue expenditure utilisation rates, while Maharashtra (34 per cent), Tripura (37 per cent), and Uttar Pradesh (37.3 per cent) remained below the 40 per cent mark.

On the revenue side, states collected 42.2 per cent of budgeted tax receipts in the first half of FY26.  

 

Actual tax revenue collection across these states stood at ₹15.1 trillion against the BE of ₹35.7 trillion.  

Haryana led the pack by collecting 47.7 per cent of its budgeted tax revenue, followed by Assam (45.5 per cent) and Maharashtra (44.8 per cent). States like Madhya Pradesh, Rajasthan, and Uttar Pradesh collected less than 40 per cent of their BE. 

Under the borrowings and other liabilities category, states have utilised 35.8 per cent of their budgeted borrowings, raising ₹4.08 trillion against the BE of ₹11.4 trillion. Telangana, Andhra Pradesh, and Kerala led the pack, having raised over 65 per cent of their borrowing estimates within the first six months of FY26. In contrast, Maharashtra, Uttar Pradesh, and Jharkhand raised less than 11 per cent of their budget estimates.SHI