Chandigarh, Dec. 2 -- Punjab has reported a 36% decline in capital expenditure (capex) during the first half of the 2025-26 financial year, as compared to last year. The state government spent Rs 1,760 crore on capex during the April-September period, which is only 17% of the Rs 10,302 crore earmarked in the budget for the purpose for the current fiscal year, according to official data maintained by the audit and accounts department. In comparison, the state government had spent Rs 2,773 crore on capital expenditure during the corresponding period last year. The percentage of the capex utilised then was also significantly higher at 37%, out of the budgeted outlay of Rs 7,445 crore for 2024-25. Capital expenditure refers to government investment in the creation of assets that are long-term in nature, stimulate economic activity, and generate additional revenue streams. Income-generating capital assets typically recover their costs over time. According to economists, stagnant or declining capital spending signals inadequate investment in development, poor asset creation and neglect of existing infrastructure, and can be detrimental to the financial health of the state. A senior government functionary said that capex utilisation was appearing low because several departments had yet to submit their bills. "We are holding regular meetings to review the progress of development works and accelerate capital spending. The departments have been asked to promptly book their capex expenditure. There has been an improvement in capex utilisation, which has now increased to 24% by the end of October," he added. The sluggish utilisation in the first half has placed Punjab among the states with the lowest expenditure on asset creation during the April-September period. Of the major states, Chhattisgarh (14%), West Bengal (15%), Uttar Pradesh (16%) are the only ones whose percentage of the budgeted capex utilised during this period is lower than Punjab's. States like Telangana, Kerala, Madhya Pradesh, Haryana, Gujarat, Andhra Pradesh, Bihar, and Jharkhand stand out, and several of them recorded an increase in capex compared to last year. Telangana topped the list with 61% budgeted capex utilisation. The Punjab government's spending on asset creation has fallen short of its targets over the past several years. In the 2024-25 financial year, against a capital expenditure of Rs 7,445 crore in budget estimates, the state government spent Rs 6,874 crore. In the previous financial year, capex spending was only Rs 4,743 crore against a full-year target of Rs 10,345 crore. In November 2023 also, a Bank of Baroda report, which studied the finances of 26 states, had put Punjab at the bottom of the ladder along with Chhattisgarh, Nagaland and Mizoram, calling them 'laggards' for slipping behind capex envisaged in their approved budgets. Unsustainable subsidies and lopsided priorities are often cited as key reasons for the low investment in capital creation, despite rising revenues and substantialborrowings....