BUDGET
FY27 interest-free capex loans to states INR 1.85 tln, up 28% on yr
This story was originally published at 14:20 IST on 1 February 2026
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NEW DELHI – The Union Budget for 2026-27 (Apr-Mar) has estiamted interest-free loans for capital expenditureto to states at INR 1.85 trillion in 2026-27 (Apr-Mar), up over 28% from the revised estimate of INR 1.44 trillion in FY26. The Budget for FY26 had projected the interest-free loans at INR 1.50 trillion.
Under the capital expenditure loan scheme, the Centre provides 50-year interest-free loans to states for capital expenditure. The Centre has been progressively increasing the outlay for this scheme since its first announcement in FY22. End
Reported by Krity Ambey and Suryash Kumar
Edited by Pankaj Aher
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