Construction Industry Bears The Brunt Of Capex Restraint By States

Reeling under the impact of lockdown and dwindling gross tax collections, state governments are less likely to loosen the purse strings, whose brunt will have to be borne by the construction industry, according the credit rating agency ICRA. As per the rating agency, the overall capex budgeted by states for FY2021 was around Rs 5.7 lakh crore. But it is likely to be reduced as they cannot afford to take the leap of faith in terms of capital expenditure as of now. The impact of nationwide lockdown is evident as economic activities have been shunted, and the state revenues have gone down, ICRA said to Economic Times.

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