Capital expenditure by state governments likely grew 10% on-year in the first six months of the current financial year on a shrunken base, reflecting a moderate rate of growth compared to the Centre’s frontloading of capex to boost economic activity. A review of 18 states’ finances by FE showed that their capex in April-September rose to Rs 2.5 lakh crore compared with Rs 2.26 lakh crore in the year-ago period. These states’ capex had contracted by 9% in April-September a year ago, due to election-related pauses.