Big states lag on capital expenditure front despite Centre's support

Economists say many poll-bound states chose to focus on scheme and subsidy spending

At a time when private sector investment plans are taking a hit due to the Covid-19 pandemic, it is the public sector that has been bearing the weight of capital expenditure and new infrastructure spending in the Indian economy in the past few years.

Chief Economic Advisor V Anantha Nageswaran had last month said that in the past 10 years, public sector capital investment increased from Rs 6.8 trillion to Rs 21.2 trillion, at a time when the financial sector companies were still repairing their balance sheets. By public sector, Nageswaran meant the central and state governments and state-owned enterprises.