States’ capex pace strong till Nov; may slow in Q4

Improved revenues and a resolve to pump-prime the economy helped state governments to front-load their capital expenditure. Data gathered by FE of 18 states showed that these states reported a combined capex of Rs 2.1 lakh crore in April-November of FY22, up 66% on the year, compared with a decline of 34% witnessed in the corresponding period of FY21.The combined capex of all states need to grow 44% on year to achieve their combined capex target of Rs 7.23 lakh crore for FY22.Conventionally, cap