Mumbai: The capital outlay of the country’s top-15 States for FY26 is projected to rebound by 18 per cent (year-on-year) to Rs7.2 lakh crore, driven by a post-election boost in capital spending, execution of infrastructure projects and continued allocation of Rs1.50 lakh crore to States through interest-free capex loans in the Union Budget 2025-26, according to a report released on Wednesday.

The report by CareEdge Ratings analysed the finances of the top-15 States, which account for 87 per cent of India’s Gross State Domestic Product (GSDP) for FY24, to provide insights on aggregate state finances. These States were Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal. A healthy 11-12 per cent growth in tax devolution from the Centre and own tax revenue is expected to drive an overall revenue receipts growth of approximately nine per cent in FY25, the report stated.