New Delhi [India], June 23 : Over five states in the country are expected to contribute nearly half of the total capital outlay (capex) in the financial year 2025-26 (FY26), according to a report by Bank of Baroda.
Uttar Pradesh and Gujarat are among the biggest contributors, followed by Maharashtra, Madhya Pradesh, and Karnataka.
The report stated, "Over 5 states are estimated to contribute around 50 per cent of the total capital outlay in FY26, with Uttar Pradesh and Gujarat amongst the biggest contributors, followed by states like Maharashtra and Madhya Pradesh".
Capital outlay refers to the money spent by governments (in this case, state governments) on building or acquiring fixed assets like roads and highways, schools and hospitals.
In FY25, the total capital outlay of 26 states was Rs 8.7 lakh crore. The report mentioned that this number is expected to increase to Rs 10.2 lakh crore for FY26.
Among the 26 states, Uttar Pradesh leads with a 16.3 per cent share in capital outlay, followed by Gujarat (9.4 per cent), Maharashtra (8.3 per cent), Madhya Pradesh (8.1 per cent), and Karnataka (6.7 per cent).
In comparison, in FY25, the top five contributors were Uttar Pradesh (16.9 per cent), Maharashtra (10.9 per cent), Gujarat (8.1 per cent), Madhya Pradesh (7.5 per cent), and Odisha (6.4 per cent).
States like Nagaland, Himachal Pradesh, and Sikkim are estimated to have the lowest share in FY26 capital outlay, contributing just 0.4 per cent.
The report also mentioned that the total receipts of all 26 states are expected to rise to Rs 69.4 lakh crore in FY26, marking a 10.6 per cent increase from Rs 62.7 lakh crore in FY25. Revenue receipts are likely to grow by 12.3 per cent, while capital receipts may increase by 6.6 per cent in FY26.
On the revenue side, the top five states contributing the most in FY26 include Uttar Pradesh (13.3 per cent), Maharashtra (11.3 per cent), and Madhya Pradesh, Karnataka, and Rajasthan (5.9 per cent each). Tamil Nadu was also among the leading states in revenue receipts in FY25.
The report also noted that states are expected to stick to their fiscal deficit targets in FY26. Around 12 states are projected to have a lower fiscal deficit (as a percentage of GSDP) than their median levels. Additionally, 13 states are estimated to be in revenue surplus during the year.
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