Tamil Nadu is among the States which saw a decline in capital expenditure in the primary quarter of 2025-2026.
Capital expenditure (capex) goes in direction of creation of fastened belongings, akin to roads and bridges, irrigation constructions, colleges, hospitals, together with investments made in Public Sector Undertakings. It helps in enhancing financial exercise and producing employment.
Tamil Nadu’s capital expenditure declined about 18% to ₹4,155.74 crore in April-June 2025 quarter, when in comparison with ₹5,041.90 crore in the identical interval final 12 months, based on provisional figures from the Comptroller and Auditor-General (CAG).
According to a report by ICICI Bank Global Markets, Andhra Pradesh led the capex progress in the primary quarter with a 267% progress, adopted by Haryana 103% and Gujarat 65%.
Uttar Pradesh saw a 42% progress, whereas Karnataka registered 16% progress in capex, it stated.
Apart from Tamil Nadu, Maharashtra and West Bengal additionally saw a 28% decline every in capex, whereas Telangana saw a 22% decline in capex for the primary quarter, the report added.
In first quarter of fiscal 2026, general states’ capex grew 28% on a 12 months on 12 months foundation. This got here on a low base of a 22% decline in capex throughout the first quarter of fiscal 2025, it famous.
Tamil Nadu’s personal tax income elevated about 14.5% to ₹43,070.45 crore in the primary quarter of 2025-2026 from ₹37,605.43 crore in the identical interval final 12 months.
The State’s income expenditure stood at ₹79,054.68 crore in the primary quarter of 2025-2026, when in comparison with ₹ 83,636.73 crore in the comparable interval final 12 months. Revenue expenditure consists of expenditure on account of salaries, pensions and different retirement advantages, operations and upkeep, curiosity on excellent loans, and subsidies and grants for welfare schemes.
