New Delhi, Sept. 18 -- New Delhi: States should raise their capital outlay to around 3% of gross state domestic product (GSDP), or 20% of their budget resources, by 2031-32 to strengthen productive capacity and support India's journey towards becoming a developed economy by 2047, revenue secretary Arvind Shrivastava said on Friday.

The recommendation was made in a presentation at the Union finance ministry's two-day conference of state finance ministers and finance secretaries on financing India's journey towards Viksit Bharat. States have currently budgeted around Rs.11 trillion in capital outlay, equivalent to about 2.4% of GSDP and 16% of their budget resources, according to the presentation.

The presentation underlined the central r...