https://www.taxtmi.com/news?id=63007 State capital outlay is projected to rise from four to six per cent, reaching ~Rs 7.5 lakh crore, but remains below prior and decadal averages. Rising revenue deficits-linked to GST rate moderation, lower devolution and softer nominal GDP growth-are curbing financial flexibility and borrowing capacity for capital projects. Revenue expenditure growth (seven to nine per cent) driven by committed spending and social welfare allocations will widen deficits and squeeze fiscal space. The report emphasizes the high multiplier effect of government capital expenditure and states' need to balance social spending with capital outlays to preserve creditworthiness. en-us Fri, 28 Nov 2025 14:01:03 +0530 Fri, 28 Nov 2025 14:01:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=63007 State capital outlay is projected to rise from four to six per cent, reaching ~Rs 7.5 lakh crore, but remains below prior and decadal averages. Rising revenue deficits-linked to GST rate moderation, lower devolution and softer nominal GDP growth-are curbing financial flexibility and borrowing capacity for capital projects. Revenue expenditure growth (seven to nine per cent) driven by committed spending and social welfare allocations will widen deficits and squeeze fiscal space. The report emphasizes the high multiplier effect of government capital expenditure and states' need to balance social spending with capital outlays to preserve creditworthiness. News - Fri, 28 Nov 2025 14:01:03 +0530 https://www.taxtmi.com/news?id=63007