CHENNAI: India’s capital expenditure (capex) momentum remained strong in the first half of FY2025-26, with the ministries of road transport and highways and railways surpassing the national average, according to the latest data from the Controller General of Accounts (CGA).
Between April and September 2025, the Ministry of Road Transport and Highways utilized 63 percent of its Budget estimates, while the Ministry of Railways spent 57 percent. In comparison, the overall central government capex stood at 52 percent of the Budget estimates for the period, underscoring the government’s continued focus on infrastructure-led growth.
In the same period last year (April–September FY2024-25), total capex utilisation was around 49 percent of the Budget estimates, while the ministries of road transport and railways had achieved 60 percent and 55 percent, respectively. The higher spending in FY2025-26 thus marks a continued trend of front-loaded infrastructure investment by the government.
The robust expenditure by these infrastructure ministries reflects the Centre’s strategy to sustain capital investments despite fiscal constraints, as they play a pivotal role in driving economic recovery and job creation. Road and rail projects have been key drivers of the government’s public investment push, aimed at improving logistics efficiency and nationwide connectivity.
Public expenditure analysts note that the front-loading of expenditure in these sectors could help maintain growth momentum amid global uncertainties and a cautious private investment environment. However, they caution that maintaining spending efficiency and ensuring timely project execution will be crucial for translating higher outlays into tangible economic gains in the second half of the fiscal year.
