13 states can incur capex worth Rs 7.4 trillion in FY23: ICRA report

Spending space available without pressure to their fiscal profile, says agency

A clutch of 13 states, with 85 per cent share of India’s Gross Domestic Product (GDP), have the fiscal space of Rs 7.4 trillion for capital spending in the current fiscal (FY23). That is 81 per cent higher than the capex of Rs 4.1 trillion they incurred in FY22, according to rating agency ICRA.

The funding potential is 29 per cent higher than the states' FY23 budget estimate (BE) of Rs 5.8 trillion. ICRA’s assessment considered funds likely to be available from the unconditional market borrowings of 3.5 per cent of gross state domestic product (GSDP). It factored the interest-free