New Delhi: As the first Union Budget under Delhi’s new BJP government sets the tone for the capital’s fiscal roadmap, the Centre has earmarked Rs 1,348.01 crore for the city in 2026–27, unchanged from last year’s Budget estimates but higher than the revised outlay for the current financial year.
According to the Union Budget documents, the allocation includes Rs 968.01 crore under the revenue head and Rs 380 crore as capital expenditure. The total transfer mirrors the Budget Estimates of 2025–26, though it marks an increase of around 8 per cent over the Revised Estimates of Rs 1,242 crore for the current financial year.
Chief Minister Rekha Gupta welcomed the Budget, describing it as forward-looking and aligned with Prime Minister Narendra Modi’s vision. “The Union Budget 2026–27 lays a strong foundation for a Viksit Bharat and will help Delhi scale new heights,” she said.
The largest portion of the allocations, Rs 951 crore, has been provided as central assistance for Union Territories, forming the backbone of routine financial support to the Delhi government. An additional Rs 380 crore has been earmarked for externally aided projects, primarily for the Chandrawal Water Treatment Plant. The project aims to strengthen Delhi’s water supply infrastructure, ensure equitable distribution and facilitate a continuous 24x7 supply system. Delhi has also received Rs 15 crore as a contribution to the Union
Territory Disaster Response Fund to deal with emergencies such as floods, droughts and earthquakes, while Rs 2 crore has been allocated towards enhanced compensation for victims of the 1984 anti-Sikh riots.
Commenting on broader fiscal provisions, Gupta said, “The provision of Rs 1.4 lakh crore for states as rural and urban local body and disaster management grants will help them move forward.” She added that the Budget focuses on youth, farmers and the middle class, while creating a roadmap for employment, infrastructure and inclusive development.
Highlighting infrastructure initiatives, the Chief Minister termed the proposed Delhi–Varanasi high-speed rail corridor a historic decision. “This project will significantly enhance connectivity, boost tourism, generate employment and strengthen ease of doing business,” she said.
The Union Budget has also allocated Rs12,503.65 crore to Delhi Police for 2026–27, reflecting a 4.79 per cent increase over the previous fiscal year. The funds will be used for routine expenditure as well as modernisation initiatives, including improved communication networks, advanced technology integration, traffic signal installation and personnel training.
With the capital component rising sharply from Rs 274.99 crore in the revised estimates to Rs 380 crore, the Budget signals renewed emphasis on long-term infrastructure creation, even as debates over fiscal adequacy and autonomy are expected to continue. The new allocations will take effect from April 1, 2026, subject to parliamentary approval of the Finance Bill.