States' capex likely fell 9 per cent in first half

Infrastructure investment by the states is likely to have fallen by 9 per cent in the first half of this fiscal year,

The fall is due to a combination of factors including the COVID-19 pandemic.

According to a report from the Centre for Monitoring Indian Economy (CMIE), states' capital expenditure (capex) is likely to have fallen by 9 per cent in the first half of this fiscal year, from ₹3.43 lakh crore in the same period last year to ₹3.12 lakh crore.

The fall in capex is due to a combination of factors, including the COVID-19 pandemic, which has led to a sharp decline in the states' revenues. The pandemic has also disrupted the supply chain and made it difficult for states to execute their infrastructure projects.

The decline in capex is a matter of concern, as it could lead to a slowdown in economic growth. Infrastructure investment is essential for creating jobs and boosting productivity.

The government has taken some steps to address the issue, including providing additional financial assistance to the states. However, more needs to be done to ensure that states have the resources they need to invest in infrastructure.