New Delhi, Sept. 22 -- State governments are targeting a combination of fiscal consolidation and higher capital spending in FY27, with capital outlay across 19 states expected to grow 16.4 per cent year-on-year, faster than the 9.2 per cent rise in revenue expenditure excluding interest, Antique Stock Broking said in a report.

The 19 states analysed by Antique account for around 95 per cent of India's GDP. The report said the budget plans are "non-inflationary in nature", as revenue receipts are expected to grow faster than expenditure, while higher capital spending should support capacity creation.

"Overall, FY27 government budgets (center & state) provide support to the overall capex cycle," the report said.

States have budgeted a 13...