In a significant development for the national capital, the Municipal Corporation of Delhi (MCD) unveiled its budget for the financial year 2026-27 on Friday, December 6, 2025. Commissioner Ashwini Kumar presented a budget worth Rs 16,530.50 crore, marking a return to the regular budgetary process after a two-year hiatus marred by political instability and power struggles within the civic body.
Key Financials and Revenue Strategy
The proposed expenditure for 2026-27 shows a decrease of approximately Rs 470 crore compared to the previous year's budget of Rs 17,002 crore. In a relief for residents, Commissioner Kumar explicitly announced that there will be no increase in tax rates. The civic body has set an ambitious revenue target of Rs 15,679 crore to meet its expenses, acknowledging the financial constraints it has been facing.
However, the corporation's liabilities are projected to be slightly higher, at Rs 15,791 crore. To bridge this gap and strengthen its finances, the MCD plans to expand the tax base and enhance recovery mechanisms. Officials expect that with improved collection systems, taxes will contribute to 58% of the total receipts. For the current fiscal year 2025-26, the Revised Budget Estimates peg expenditure at Rs 16,296.19 crore against an income of Rs 15,679.72 crore.
Sector-Wise Allocations: Sanitation Tops the List
The budget outlines clear spending priorities, with the sanitation sector receiving the lion's share. A sum of Rs 4,795.28 crore (about 29% of the total budget) has been earmarked for sanitation, though this is slightly lower than last year's allocation of Rs 4,907 crore. The funds are intended for road cleaning and improving overall visible cleanliness across Delhi.
Education emerges as the second-highest priority, with an allocation of Rs 2,520.34 crore, constituting around 15% of the budget. This focus will translate into investments in school infrastructure, including the construction of new buildings and minor repairs. A major component is the Direct Benefit Transfer (DBT) scheme for students.
"Out of approximately 6,58,541 students in MCD schools, 4,26,467 have received a subsidy of Rs 1,670 per student directly into their bank accounts for books, uniforms, and stationery. A total of ₹71.22 crore has been transferred under this scheme," stated Commissioner Kumar.
The public health and medical aid sector secures the third position with an allocation of Rs 1,905.60 crore, accounting for nearly 12% of the budget.
Initiatives for Clean Air and Waste Management
Aligning with Delhi's battle against air pollution, the civic body has placed an order for 14 mechanical road sweeping machines, funded under the National Clean Air Programme (NCAP). These will soon join the MCD's fleet.
Significant strides in waste management were highlighted. The foundation stone has been laid for a massive 3,000-tonnes-per-day (TPD) waste-to-energy plant at Narela-Bawana. Furthermore, the capacity of the Okhla waste-to-energy facility is being expanded from 1,950 TPD to 2,950 TPD. The MCD has also floated tenders for new waste processing units at Bhalswa, Shinghola, Okhla, and Bawana.
Other Notable Budget Highlights
Property Survey Digitalisation: Following a drone survey, records of all properties in Delhi are being digitized. This tripartite project involving the MCD, DDA, and Survey of India aims to identify illegal constructions, improve house tax collection, and spot encroachments. About 75% of the survey, covering 1,000 square kilometers, is complete.
Simplified Licensing: The MCD will simplify health trade licenses and strictly enforce a single-license scheme for all types of businesses.
Road Construction: To help reduce pollution, the corporation plans to construct 600 km of roads, of which 250 km have already been built.
The budget was presented before the Standing Committee, the core executive arm of the MCD, signaling a move towards normalcy in the civic body's financial governance after a prolonged period of disruption.
