Tamil Nadu’s capital expenditure increased by about 31% to ₹5,196.21 crore in the first quarter of 2023-24 from ₹3,976.45 crore in the same period last year, as per the unaudited provisional figures from the Comptroller and Auditor-General (CAG). The State has seen a slight improvement in quality of borrowings, when compared to pre-Covid levels, analysts said.
However, Tamil Nadu’s share in aggregate capex among 20 States went down to 5% in the first quarter of 2024 from 6.7% in first quarter of 2023, India Ratings and Research said in a report.
Capital expenditure is incurred by State governments to create fixed assets such as roads and bridges, irrigation structures, schools, hospitals and investments made in public sector undertakings. It helps improve economic activity and create jobs.
