States may have to cut FY21 capital spending by Rs 3.4 lakh crore: ICRA

The ratings agency ICRA said that state governments may be forced to cut the capital expenditure in FY 2020-21. This cut may be as much as 3.4. lakhs crore in FY 2021 since there is shortfall in GST compensation and central tax devolution. This curtailment would be forced despite the options for additional borrowings put forth by the government of India, said Jayanta Roy, group head, corporate sector rating at ICRA.

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