A significant portion of the Delhi government's financial resources is directed towards funding popular welfare schemes, including free electricity, water, and public transport for women. According to a detailed analysis of budgetary transactions prepared by the Directorate of Economics and Statistics, these subsidies and transfers account for approximately 35% of the state's total expenditure.
Subsidies Form the Core of Welfare Spending
The report, which scrutinizes the budgets for 2023-24 (actuals), 2024-25 (revised estimates), and 2025-26 (budget estimates), highlights the substantial outlay on current transfers and subsidies. The expenditure in this category was Rs 23,563 crore in 2023-24, which rose to Rs 25,896 crore in 2024-25 and is projected to jump to Rs 34,520 crore in 2025-26.
A major share of this subsidy budget is allocated to transport concessions. This includes funding for concessional passes issued by the Delhi Transport Corporation (DTC), compensation for operational deficits of cluster and e-buses, and specific subsidies for female commuters using DTC and cluster buses. Additionally, subsidies for electric vehicle (EV) e-buses are covered.
Beyond transport, the analysis also accounts for subsidies provided to consumers for sugar, as well as financial support to power distribution companies (discoms), the Delhi Jal Board, and the New Delhi Municipal Council.
Continuity in Policy Across Governments
The suite of free services, a hallmark of the previous Aam Aadmi Party (AAP) government, remains intact. These include free electricity for domestic consumers using up to 200 units per month, free water up to 20,000 litres monthly, and unlimited free bus travel for all women on public buses. Despite the Bharatiya Janata Party (BJP) forming the government in February 2025, it has chosen to continue all these welfare initiatives.
The government's total spending reflects its priorities. In 2023-24, the total expenditure was Rs 65,823.87 crore. It is estimated at Rs 69,500 crore for 2024-25 and is budgeted to reach a substantial Rs 1 lakh crore for 2025-26.
Shifting Focus: From Subsidies to Infrastructure
While subsidies dominate current spending, a shift towards capital expenditure is evident. The report indicates that nearly 95% of the 2023-24 spending went to key areas, with subsidies and current transfers leading at 35.8%, followed by government employee salaries (24%), and new construction (9.5%).
Expenditure on new construction is poised for a dramatic increase, signaling the current BJP administration's emphasis on infrastructure development. The outlay for new construction, which includes roads, bridges, and other projects, was Rs 6,228 crore in 2023-24 and Rs 4,130 crore in 2024-25. However, it is budgeted to surge to Rs 13,882 crore for 2025-26.
This infrastructure push is being supported by growing revenue receipts, estimated to rise by 43.57% over two years, from Rs 56,798 crore in 2023-24 to Rs 81,546 crore in 2025-26. A key factor in this growth is loans from the central government. While Delhi received no central loan in 2023-24, it is slated to receive Rs 15,380 crore in 2025-26, which will aid in funding major development projects across the capital.
Bipul Pathak, Additional Chief Secretary of Planning, stated that the comprehensive report will serve as a valuable resource for policymakers, planners, and researchers in understanding the fiscal dynamics of the national capital.
