Capital gets Rs 1,348 cr in Union budget

The allocations for Delhi under the Union Budget for 2026-27, the first for the new BJP regime in the city, remain unchanged at Rs 1,348 crore, the same amount as the previous year. The total transfers for Delhi, from the Union Ministry of Home Affairs, are Rs 1348.01 crore, including Rs 968.01 crore under revenue and Rs 380 crore under capital heads, according to the Union Budget 2026-27.

The Union Budget has earmarked Rs 1,348.01 crore for Delhi in the Union Budget for 2026-27, an increase of about 8 per cent from the revised estimate of Rs 1,242 crore for 2025-26. The funds are being routed through the Ministry of Home Affairs as “Transfers to Delhi”, reflecting continued central support to the national capital’s administrative and development needs.

The largest portion of the allocation, Rs 951 crore, has been provided as central assistance to Union Territories, which includes Delhi. This forms the core of routine financial support to the city government for operational and administrative expenditure.

A significant boost has been given to infrastructure-related projects, with Rs 380 crore allocated for externally aided projects, primarily linked to water treatment infrastructure.

The funds are meant for projects such as the Chandrawal water treatment plant, aimed at strengthening Delhi’s water supply system. The project will result in a 24x7 water supply to Chandni Chowk, Pahari Diraj, Idgah, Civil Lines, Karol Bagh, Kamla Nagar, Malkaganj, Rajinder Nagar, Shadipur, Patel Nagar and Naraina in Delhi. The plant also caters to nearly 30 per cent of the water supply in NDMC areas, contributing more than 100 gallons per day. Under the overhead, Additional Central Assistance for Externally Aided Projects (Chandrawal water treatment plant), the Union Budget had made a provision of Rs 142 crore in 2024-25 and Rs 274.99 crore in RBE 2025-26.

The plant had also got a budgetary allocation from the Centre in the financial year 2023-24. Under the project, an old and decrepit 1,000 km water supply network in the Chandrawal catchment area of more than 96 sqm will be replaced, and 21 underground water reservoirs will be rehabilitated.

The Centre has also retained Rs 15 crore for Delhi under the Union Territory Disaster Response Fund, ensuring financial preparedness for emergencies such as floods, heatwaves and other climate-related challenges.

Key Financial Allocations

• Revenue expenditure: Rs 968.01 crore (for operational and administrative costs).
• Capital expenditure: Rs 380 crore (a jump from Rs 274.99 crore in the previous revised estimates).
• Central assistance to UTs: Rs 951 crore, forming the core support for the Delhi Government.

Infrastructure and Development

• Chandrawal water treatment plant: A substantial portion of the Rs 380 crore capital allocation is dedicated to this project.
• Impact: It aims to provide 24/7 water supply to areas including Chandni Chowk, Karol Bagh, Civil Lines and Patel Nagar
• Scope: The project includes replacing a 1,000 km old water supply network and rehabilitating 21 underground reservoirs.