Hyderabad: Telangana ranked seventh among 20 major states in capital expenditure (capex) spending during the first quarter of FY27, utilising 13.9% of its annual allocation, according to an SBI Research report. The performance was above the 20-state average of 10.5%, even though capital expenditure accounts for ₹47,267 crore, or 14.6% of Telangana’s ₹3.24 lakh crore total Budget estimate for 2026-27. Andhra Pradesh, meanwhile, ranked third after utilising 16.6% of its annual capex allocation during the April-June quarter.Kerala emerged as the clear leader, utilising 36.9% of its annual capital outlay during the first quarter. Its spending pace was nearly 2.7 times that of Telangana and more than double that of Andhra Pradesh.The rankings placed Kerala at the top, followed by Madhya Pradesh, which utilised 18.2% of its annual capex allocation. Andhra Pradesh was third at 16.6%, followed by Haryana at 16.3%, Himachal Pradesh at 15.9% and Rajasthan at 14.6%. Telangana stood seventh at 13.9%.For Telangana, the latest performance marks a modest improvement over the 13% utilisation recorded in the first quarter of FY26. The state’s capex spending was also above the average for the 20 states covered in the SBI Research report, indicating a relatively faster pace of implementation of infrastructure and other asset-creation projects.The 2026-27 Telangana Budget Estimates have earmarked ₹47,267.28 crore for capital expenditure. Against the total budget outlay of ₹3,24,234 crore, this translates into a capital expenditure share of 14.6%.Capital expenditure is closely watched as it reflects govt investment in roads, irrigation projects, public buildings and other infrastructure that can support long-term economic growth. Faster utilisation of allocations early in the financial year is generally seen as an indication of quicker project execution.According to the SBI research report, the 20 states together utilised only 10.5% of their budgeted capital expenditure during the April-June quarter. The Centre, however, significantly outpaced the states, having already spent 27.8% of its annual capital expenditure allocation during the first quarter.While Telangana’s seventh-place ranking indicates that its pace of capex utilisation was better than that of most major states, the comparison also highlights the substantial gap with Kerala, which has moved far ahead in converting its annual capital allocation into actual expenditure. Andhra Pradesh, meanwhile, was among the top-performing states, ranking third behind Kerala and Madhya Pradesh.
