3 weeks ago
Centre sustains capex push in Q1 despite global headwinds
The government of India is like a big piggy bank that collects money from taxes and spends it to help the country grow.
This year, it decided to spend a lot of money on building things like roads, railways, ports, and city infrastructure.
Building these useful things is called 'capital expenditure.'
In the first three months of the financial year, from April to June, the government spent ₹3.4 trillion on such projects.
That is almost 28 percent of the money it planned to spend for the whole year.
The government believes that building public things helps create jobs and makes trade easier.
It kept spending even though there are problems in world trade and uncertainty in many countries.
The government also paid a lot of money toward interest on its loans and subsidies to help people.
Overall, the government wants to keep the economy growing by investing in useful things for the future.
The Centre's capital expenditure hit ₹3.4 trillion in April-June, about 28% of the FY27 budgeted target of ₹12.22 trillion.
Total expenditure in Q1 stood at ₹13.57 trillion (25.4% of FY27 budget estimates), with capex roughly a quarter of overall spending.
Receipts in the quarter reached ₹10.49 trillion, or 28.7% of the budgeted amount, including ₹6.37 trillion in net tax revenue.
Transfers to states as their tax share fell to ₹2.63 trillion, ₹63,605 crore lower than a year earlier.
The infrastructure-led spending push continues despite global trade disruptions and geopolitical uncertainty, with major subsidies amounting to ₹1.15 trillion.
- Who
- The Government of India (the Centre) and the Finance Ministry
- What
- Sustained a strong pace of capital expenditure, spending ₹3.4 trillion on infrastructure and asset creation in Q1 FY27, about 28% of the budgeted ₹12.22 trillion
- Where
- India; the report was datelined New Delhi
- When
- April-June, the first quarter of FY27; the data was released by the finance ministry on Wednesday
- Why
- To support economic growth and crowd in private investment amid global trade disruptions and geopolitical uncertainty
Key facts
- Capex in Q1 FY27
- ₹3.4 trillion (about 28% of budget)
- Budgeted capex for FY27
- ₹12.22 trillion
- Total expenditure in Q1
- ₹13.57 trillion (25.4% of budget estimates)
- Total receipts in Q1
- ₹10.49 trillion (28.7% of budgeted amount)
- Net tax revenue in Q1
- ₹6.37 trillion
- Tax transfers to states in Q1
- ₹2.63 trillion, down ₹63,605 crore year-on-year
- Interest payments in Q1
- ₹3.46 trillion
- Major subsidies in Q1
- ₹1.15 trillion










