New Delhi, Sept 7: CRISIL has found the target of 36 per cent rise in capex by 21 states — accounting for 90 per cent of aggregate state capital expenditure — for 2021-22 year-on-year as ambitious. Rather, it expected an 11-13 per cent rise in capex by these states in line with the previous financial year.
These states spent 82 per cent of the Budgeted capital outlay, posting a modest 11 per cent rise over a low base of 2019-20 which saw a marked dip in actual capex due to post-election lethargy in many states at the Centre.
CRISIL said a larger part of funds earmarked for capex was diverted to Covid-related expenses in the previous financial year. This trend is expected to continue this financial year too, it said.
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