Capex loan to states may be 20% lower than Budget estimates

The government is anticipating loan disbursement for state capital expenditure to be 15-20% less than planned for fiscal 2025. The slowdown is due to spending delays from general elections. The initial allocation was ₹1.5 lakh crore, but this may be reduced to ₹1.30-1.35 lakh crore. Efforts are ongoing to boost spending in the second half.