Budget – Delhi Government Unveils Green-Focused Financial Plan for 2026-27
Budget – Delhi Chief Minister Rekha Gupta on Tuesday presented the government’s second Budget in the Assembly, outlining an ambitious plan aimed at reshaping the national capital into a cleaner, safer, and more inclusive city. The total budget for the financial year 2026–27 has been set at Rs 1,03,700 crore, reflecting an increase of Rs 3,700 crore compared to the previous year. This represents a modest annual growth of 3.7%, indicating a cautious but steady expansion in public spending.
Focus on Environmental Sustainability
A key highlight of this year’s financial plan is the introduction of a dedicated “Green Budget,” a first for the capital. The government has earmarked Rs 22,236 crore specifically for environmental protection and sustainable initiatives, accounting for over one-fifth of the total outlay. This move signals a stronger commitment to tackling pollution, promoting clean energy, and improving urban ecology.
Officials described this as a strategic step toward long-term environmental resilience, aligning infrastructure development with sustainability goals.
Sharp Rise in Capital Expenditure
The budget reflects a significant shift in spending priorities, particularly in infrastructure investment. Capital expenditure has seen a substantial increase, rising to around Rs 30,800 crore from Rs 17,224 crore in the previous fiscal year. This nearly 79% jump stands out against the relatively moderate overall budget growth.
Such an increase suggests a focus on building long-term assets, including transportation networks, housing projects, and urban infrastructure improvements.
Fiscal Indicators Show Tightening Space
Despite higher spending, the government’s financial position indicates some tightening. The fiscal deficit is projected to rise to Rs 16,266 crore, up from Rs 13,703 crore last year. At the same time, the revenue surplus is expected to decline slightly to Rs 9,091 crore from Rs 9,661 crore.
These figures point to a careful balancing act, where increased investments are being made alongside growing borrowing requirements and reduced financial cushion.
Revenue Trends and Funding Sources
Delhi’s own tax revenue is expected to grow, with projections reaching Rs 74,000 crore compared to Rs 68,700 crore in 2025–26. Goods and Services Tax continues to be the largest contributor, estimated to bring in Rs 43,500 crore, up from Rs 41,000 crore.
Revenue from stamp duty is also expected to rise significantly, from Rs 9,000 crore to Rs 11,000 crore, indicating stronger activity in property transactions.
However, grants from the central government are projected to decline sharply, falling to around Rs 7,000 crore from approximately Rs 12,096 crore. To bridge the gap, borrowings are expected to increase to Rs 16,700 crore.
Key Sector Allocations
Education remains the top priority in terms of spending, receiving Rs 19,326 crore, which accounts for 18.64% of the total budget. Public health is the second-largest sector, with an allocation of Rs 13,034 crore.
Significant investments have also been planned for infrastructure. The transport, roads, and bridges sector will receive Rs 12,613 crore, while housing and urban development have been allocated Rs 11,572 crore. Social security programs will get Rs 10,537 crore, reflecting continued attention to welfare initiatives.
Security Alert Before Budget Presentation
Earlier in the day, the Assembly premises received a bomb threat, prompting immediate action by security agencies. Police conducted thorough searches across the परिसर, but no suspicious objects were found. Authorities later confirmed that the threat did not pose any real danger, and proceedings continued as scheduled.
The incident, however, briefly heightened security concerns ahead of the important Budget session.