Chandigarh, Dec 2: Punjab’s capital expenditure fell sharply in the first half of the 2025-26 financial year, with the government spending just ₹1,760 crore against a budgeted ₹10,302 crore, official data showed. The 36% decline compared with the same period last year has sparked concerns about the state’s investment in development and infrastructure creation.
In April-September 2024, Punjab had spent ₹2,773 crore, accounting for 37% of the capital outlay, which was significantly higher than the current period. Capital expenditure includes government investments in long-term assets that are intended to generate additional revenue and drive economic growth.
Economists warned that low capex utilisation indicates poor asset creation and insufficient funding for development projects, which could weaken the state’s fiscal health.
A senior government official said departments’ delays in submitting bills contributed to the lower figures. “We are reviewing progress regularly and pushing departments to book their expenditure. Capex utilisation has now improved to 24% by the end of October,” the official said.
The first-half performance places Punjab among the states with the lowest capital spending. Only Chhattisgarh (14%), West Bengal (15%) and Uttar Pradesh (16%) recorded lower utilisation. Other states such as Telangana, Kerala, Madhya Pradesh, Haryana, Gujarat, and Andhra Pradesh reported higher capex utilisation, with Telangana leading at 61%.
Punjab has consistently fallen short of its capital spending targets over the years. In 2024-25, spending reached ₹6,874 crore against a budget of ₹7,445 crore. In the previous year, only ₹4,743 crore was spent against a target of ₹10,345 crore. Reports have pointed to unsustainable subsidies and misplaced priorities as key reasons for lagging capex, despite growing revenues and borrowing capacity.
