Capital expenditure by major Central Public Sector Enterprises (CPSEs) and four significant government bodies surged 25 percent year-on-year in June 2025, reaching Rs 62,425 crore, according to Finance Ministry data.

This rise in public spending is providing critical support to India’s economy amid tepid private sector investment. In the first quarter of FY26, these entities spent Rs 1.67 lakh crore, reflecting a 15 percent annual increase. Key contributors included the Railway Board, National Highways Authority of India (NHAI), Delhi Metro Rail Corporation, and Damodar Valley Corporation.

The top five spenders were the Railway Board (Rs 61,935 crore), NHAI (Rs 35,523 crore), NTPC, ONGC, and Indian Oil Corporation. Together, these entities have a capex target of Rs 7.85 lakh crore for FY26. Meanwhile, the Centre’s own capex rose 54 percent in April-May to Rs 2.21 lakh crore, about 20 percent of its Rs 11.21 lakh crore FY26 target.