‘States may cut outlay on infra by up to 40%’


The major States had budgeted a capital outlay of more than ₹5.7 lakh crore for 2020-21.

Impacted by the COVID-19 pandemic, States are likely to cut capital outlay on infrastructure by up to 40%, rating agency ICRA said.

States account for 37-40% of the total infrastructure capital expenditure. The major States together had budgeted a capital outlay of more than ₹5.7 lakh crore for 2020-21.

“However, with COVID-19 severely impacting revenues of State governments, and additional expenditure towards healthcare and public welfare, the capital outlay on infrastructure by States could decline 10-40% in FY2021,” ICRA said in a statement.

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