States’ aggregate capital expenditure (capex) likely grew at half the pace in April–July of the current financial year compared with the year-ago period, partly due to a monsoon-induced slowdown. Going by the finances of 20 large states reviewed by FE, their capex during April-July 2026-27 rose 10.7% year-on-year to Rs 1.79 lakh crore, compared with 21.8% growth in the same period of 2025-26. The moderation could also partly stem from only four tranches of tax devolution being shared with the states in April-July 2027, compared with five in the year-ago period.