Delayed BSNL equity infusion, sluggish state transfers drag capex momentum

Transfers to states from Centre are down 20 per cent compared to last year in the April-October FY25 period

The slowdown in central capital expenditure (capex) can largely be attributed to underspending by the Department of Telecommunications (DoT) due to the pending equity infusion into Bharat Sanchar Nigam (BSNL), reduced transfers to states from the Centre, and underutilisation of funds held by the Department of Economic Affairs, according to data from the Controller General of Accounts.

 

Although below the spending levels of last year, the bulk of capex during the April-October period has been spent by the Ministry of Road Transport and Highways and the Ministry of Railways, with a combined allocation of Rs 5.24 trillion in 2024-25 (FY25).