Rating agency ICRA on Wednesday said the combined capital spending of a sample of 13 major state governments is projected to increase by 12.6 per cent to Rs 6.5 trillion in FY25. This is significantly lower than the 24 per cent growth indicated in the budget estimates (BE) of the states, which total Rs 7.2 trillion, and the 19.6 per cent growth rate witnessed in FY24. “If you look at some early trends for this year, especially the first four months of FY25, the combined capital spending of the 13 sample states declined by 13.5 per cent to Rs 1.2 trillion. This was mainly impacted by the general elections and a high base. Additionally, heavy monsoon rainfall in some states in August and September 2024 may have hindered a sharp increase in capital spending during these months.