Central government’s capex surges 66% in June, subsidy bill also jumps

4 min readJul 31, 2026 08:43 PM IST Income tax collections were up 7% in June as well as April-June compared to last year.The central government’s capital expenditure surged 66% year-on-year in June to Rs 89,255 crore, data released Friday by the Controller General of Accounts showed. Despite this sharp increase in capex, the Centre’s total spending in June was unchanged from the same month last year, as a 31% decline in interest payments helped lower revenue expenditure by 8%. The marked rise in investments by the Centre in June means it’s now on track to meet its capex target of Rs 12.22 lakh crore for 2026-27, with 28% of the target met in the first three months of the year. Meanwhile, subsidies also rose sharply, with expenditure for urea subsidy up 68% in April-June as a whole at Rs 5