States are expected to reduce their capital expenditure on roads in FY25, focusing more on social services like public health and education. This shift is partly due to the post-pandemic realization of the need to develop human capital. States are also aiming to meet their fiscal targets, with some compromising on road spending to achieve this. While overall spending on roads by states is set to increase, the growth rate is slowing down compared to previous years. The central government is also expected to reduce its spending on roads in FY25.
