State governments’ capital expenditures have declined on a year-on-year basis during the first five months of the current financial year, according to a report by The Financial Express. This reduction in spending has extended the ongoing slowdown in public sector capital investments. An analysis of the finances of 18 states, conducted by The Financial Express, revealed that capital expenditures for the period from April to August in FY25 dropped by 6 per cent year-on-year, amounting to Rs 1.67 trillion, compared to Rs 1.78 trillion in the same period last year. Notably, the previous year had witnessed a 40 per cent growth, driven by a favourable base.