End of GST aid makes states wary: States’ capex growth much slower than budgeted

Despite robust tax revenues and high borrowing limits, the state governments have reduced their borrowings, necessitating capital expenditure growth much lower than budgeted by them, in the first five months of the current fiscal year. The combined capex of nineteen states whose finances were reviewed by FE, were up just 10% on year at Rs 1.33 trillion in April-August of FY23 compared with a 70% y…