India’s largest states, including Maharashtra , Tamil Nadu , and Uttar Pradesh , are lagging in their capital expenditure (capex) for FY26, despite setting ambitious targets. Data from the Comptroller and Auditor General of India shows that these states have spent less than 20 per cent of their budgeted capex until August. The Centre, on the other hand, has met 38.5 per cent of its budgeted capex in this period. The sluggish growth seems to be led by uncertainty on revenue collections created by the GST roll-out.

Against an outlay of ₹1.65 lakh crore on capex for FY26, Uttar Pradesh has spent only 12.95 per cent in the first five months. Maharashtra has spent 16.64 per cent of its ₹99,977 crore allocation, while Tamil Nadu has spent 17.28 per cent. Karnataka, too, has spent just 1

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