Municipal Corporation of Delhi Greenlights Historic Budget for 2026-27 Financial Year
In a landmark decision, the Municipal Corporation of Delhi (MCD) on Friday formally approved a monumental budget of approximately Rs 17,583 crore for the 2026-27 financial year. Leader of the house Pravesh Wahi proudly declared this allocation as the largest in the civic body's extensive history, marking a significant fiscal milestone for India's capital city.
Major Tax Relief for Rural and Urban Village Residents
Presenting both the revised budget estimates for 2025-26 and the fresh estimates for 2026-27, Wahi addressed a long-standing grievance of rural inhabitants. He announced a complete exemption from house tax for owners of ancestral residential houses up to 500 square metres in 49 fully declared rural villages. Additionally, in urbanised villages, property tax on residential buildings up to 200 square metres will be entirely waived for original owners, providing substantial financial relief.
Enhanced Civic Amenities and Sanitation Focus
Emphasising substantial improvements in civic amenities, Wahi revealed that an allocation of Rs 5 lakh per ward has been specifically earmarked for the maintenance of toilets, drains, and culverts. This initiative aims to bolster sanitation standards and public convenience, resulting in an overall increase of Rs 2.5 crore under this category. During his address, Wahi praised Chief Minister Rekha Gupta's working style, which sparked protests from opposition benches.
Detailed Financial Projections and Fiscal Measures
According to the 2026-27 budget estimates, the opening balance is set at Rs 410.6 crore, with total income projected at Rs 17,184.1 crore and expenditure at Rs 17,583.3 crore, leaving a closing balance of Rs 11.3 crore. Notably, the standing committee had earlier projected a significantly higher closing balance of Rs 1,204.9 crore.
Among key fiscal measures, a provision has been reintroduced allowing group housing societies a 15% rebate on property tax for timely payments, incentivising compliance.
Waste Management and Landfill Clearance Targets
On the critical front of waste management, MCD reiterated its firm commitment to clear the Bhalswa and Okhla landfills by the end of 2026 and the Ghazipur site by 2027. This ambitious timeline underscores the civic body's dedication to addressing Delhi's persistent garbage mountain issues.
Education Sector Enhancements and Safety Measures
In the education sector, two ‘Nigam Shri' schools will be established in each zone starting from the next academic session to nurture meritorious students. Furthermore, the accident insurance cover for students is proposed to be doubled to Rs 1 lakh. Guards and sanitation workers will also be appointed to all primary schools to ensure safety and hygiene.
In a move prompted by safety concerns, lifeguards will be deployed at all swimming pools under MCD jurisdiction, with guidelines issued to private operators. This announcement follows last year's tragic drowning of a six-year-old boy in an MCD swimming pool in northwest Delhi's Pitampura area.
Employment and Infrastructure Initiatives
In an employment-linked initiative, unemployed graduates will be given priority while allotting parking sites accommodating up to 100 vehicles. The allotment process will be conducted through a transparent lottery system to ensure fairness.
On the infrastructure front, a Rs 64.2-crore over/underbridge project is being undertaken at the Sultanpuri railway crossing near Nangloi, aimed at improving connectivity and reducing traffic congestion.
Stray Animal Management and Enforcement Actions
MCD reported that 6,347 stray animals were captured in 2025, with action taken against 184 illegal dairies. Enforcement drives are set to intensify to further address these urban challenges.
Political Reactions and Opposition Criticism
The Aam Aadmi Party (AAP) termed the BJP-led MCD's budget a "paper budget," accusing it of failing to address key civic issues effectively. Leader of the opposition Ankush Narang alleged that the budget did not provide concrete solutions for garbage mountains, sanitation, MTS workers, or stray dogs. Conversely, Indraprastha Vikas Party's Mukesh Goyal described the budget as overall positive, highlighting its broad initiatives.
