Tamil Nadu amongst States that noticed a dip in capex in Q1, FY2026

Tamil Nadu is among the many States which noticed a decline in capital expenditure within the first quarter of 2025-2026.

Capital expenditure (capex) goes in direction of creation of mounted property, reminiscent of roads and bridges, irrigation buildings, 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 development within the first quarter with a 267% development, adopted by Haryana 103% and Gujarat 65%. 

Uttar Pradesh noticed a 42% development, whereas Karnataka registered 16% development in capex, it mentioned. 

Apart from Tamil Nadu, Maharashtra and West Bengal additionally noticed a 28% decline every in capex, whereas Telangana noticed a 22% decline in capex for the primary quarter, the report added.

  In first quarter of fiscal 2026, total 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 within the first 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 within the first quarter of 2025-2026, when in comparison with ₹ 83,636.73 crore within the comparable interval final 12 months. Revenue expenditure contains expenditure on account of salaries, pensions and different retirement advantages, operations and upkeep, curiosity on excellent loans, and subsidies and grants for welfare schemes.