Capital expenditure by 59 central public sector enterprises and four government organisations has exceeded a third of their annual target in the first four months, highlighting sustained public investment as private sector appetite remains subdued.
Capital expenditure by 59 central public sector enterprises and four government organisations, including the Railway Board, rose to more than a third of their full-year target in the first four months of the fiscal year, according to data from the Department of Public Enterprises. The spending came to more than ₹2.82 lakh crore between April and July, or just over 33% of the annual goal of more than ₹8.43 lakh crore, up from 28% in the same period a year earlier.
The Railway Board was the biggest spender in cash terms, putting out more than ₹1.19 lakh crore in the period. GAIL led on utilisation, having already crossed 60% of its annual target, the data showed. Capital spending is one of the performance measures used in the annual memorandum of understanding framework for state-owned enterprises, alongside return on net worth, export and import ratios, EBITDA as a share of revenue and asset turnover.
The latest figures point to continued strength in public investment even as private sector appetite remains softer. The Centre’s own capital expenditure rose about 24% in April-June from a year earlier, according to the Controller General of Accounts, with railways accounting for 35% of budget estimates and roads for 22%. The government has budgeted ₹12.21 lakh crore for capital expenditure in the current financial year, and had spent more than ₹3.40 lakh crore by the end of June.
That public spending becomes more important as private investment shows signs of caution. A forward-looking survey by the Ministry of Statistics and Programme Implementation, covering October to December 2025, pointed to a 16.5% fall in aggregate private capex intentions for FY27 to ₹9.55 lakh crore from the provisional ₹11.44 lakh crore estimated for FY26. While the survey suggested slightly higher average per-enterprise spending, it also indicated that large companies were taking a more measured approach to fresh investment.
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