Delhi's Union Budget Allocation Remains Steady at Rs 1,348 Crore for 2026-27
In the recently presented Union Budget for the fiscal year 2026-27, the financial allocation for the national capital, Delhi, has been maintained at Rs 1,348 crore, mirroring the budget estimates from the previous year. This figure comprises Rs 968 crore under revenue heads and Rs 380 crore under capital heads, both unchanged from the 2025-26 projections. However, it is noteworthy that the allocation for FY26 was subsequently revised downward to Rs 1,242 crore in the revised estimates, indicating a dynamic adjustment in fiscal planning.
Central Assistance and Project-Specific Funding
Delhi has been granted Rs 951 crore as central assistance for Union Territories, earmarked to finance various schemes implemented by the city government. Additionally, an extra central assistance of Rs 380 crore has been allocated specifically for the Chandrawal water treatment plant, which is categorized as an externally aided project. This targeted funding aims to bolster Delhi's water infrastructure, ensuring a reliable and clean water supply for countless households.
Beyond these primary allocations, the budget includes supplementary grants: Rs 2 crore for enhanced compensation to victims of the 1984 anti-Sikh riots and Rs 15 crore as a contribution to the Union Territory Disaster Response Fund. This fund is designed to provide relief in the event of notified calamities such as earthquakes, droughts, and floods, enhancing the city's resilience against natural disasters.
Political Reactions and Diverse Perspectives
Chief Minister Rekha Gupta extended congratulations to Finance Minister Nirmala Sitharaman for presenting what she termed a "spectacular" Budget. She highlighted the provision of Rs 1.4 lakh crore to states for rural and urban local body grants, as well as disaster management, which she believes will propel regional development forward. Gupta also praised the proposed Delhi-Varanasi high-speed rail corridor, describing it as a historic stride toward realizing the vision of Viksit Bharat.
"The Budget caters to every segment of society, with a particular focus on youth employment, cultural heritage conservation, sports promotion, and rebates for education and health services abroad," Gupta remarked during an event in northwest Delhi's Tri Nagar, where she watched the budget presentation alongside local residents.
Delhi BJP president Virendra Sachdeva echoed positive sentiments, emphasizing the budget's support for the construction industry, tourism, pilgrimage site development, and medical tourism. "It fosters sports and nurtures budding talents, empowering Young India," he stated. Sachdeva also welcomed the new Income Tax Act set to take effect from April 1, noting that the absence of new taxes offers relief to the middle class, while incentives for foreign data service companies in India create fresh employment opportunities for the youth.
He further applauded the reduction in customs duty on medicines for cancer and seven other diseases, calling it a reflection of the Modi government's "sensitive and compassionate face." Additionally, he pointed out that concessions on smartphones will benefit the youth, and cheaper microwave ovens will aid homemakers.
Water Minister Parvesh Verma underscored the significance of the assistance for the Chandrawal plant, stating it is a crucial step toward strengthening Delhi's water infrastructure and ensuring 24x7 clean water supply for lakhs of families. "This project will enhance distribution efficiency and secure long-term water security for the city," he added. Verma also highlighted the Centre's support for urban infrastructure, roads, flyovers, and connectivity projects, which are expected to alleviate traffic congestion, improve mobility, and elevate the quality of life for Delhiites.
"Under the visionary leadership of Modiji, Delhi is being seamlessly integrated into the larger vision of Viksit Bharat, whether through modern water systems, world-class road networks, flyovers, or high-speed rail connectivity," Verma asserted.
Criticism and Contrasting Views
In contrast, AAP national convenor Arvind Kejriwal voiced criticism, arguing that the budget fails to address India's most pressing issues. "The biggest problems in India are unemployment and inflation, but the Budget lacks a concrete blueprint for job creation. It is likely to exacerbate both inflation and unemployment," he contended, highlighting a divergent perspective on the budget's efficacy and focus.
Overall, the Union Budget 2026-27 for Delhi presents a mix of continuity in allocations and targeted investments, sparking a spectrum of political reactions that reflect the complex interplay of governance, development, and public welfare in the capital.
