States' capex growth to moderate in FY'25: Report

State government's capital expenditure (capex) is expected to grow by 13 percent in FY25, slowing down from 19 percent in FY'23-24 due to a slower start and lower revenues, according to Icra. Some states, like Maharashtra, have fiscal space for welfare schemes despite these challenges. Overall fiscal deficit of 13 states is projected at Rs. 8.8 lakh crore.