Delhi is expected to avert slipping into a revenue deficit in the coming fiscal, with a projection of revenue surplus rising to Rs 9,661 crore, owing to higher non-tax revenue, especially transfers from the Centre.
The national capital’s spending push is likely to weigh heavy on its financials, as the city-state is expected to witness its fiscal deficit to rise its highest level of Rs 13,703 crore for FY26 from Rs 1,524 crore a year ago, a Moneycontrol analysis of the state budget fineprint showed on March 25.
The BJP state government, presenting its first Delhi Budget in nearly three decades, doubled the FY26 capital expenditure to Rs 28,115 crore from Rs 14,800 crore in the current fiscal, while the revenue expenditure went up by 31.4 percent to Rs 71,884.5 crore.
Delhi had been a fiscal surplus state for most part of the last decade, but the state started to run a deficit starting 2022-23.
Delhi is expected to avert slipping into a revenue deficit in the coming fiscal, with a projection of revenue surplus rising to Rs 9,661 crore, owing to higher non-tax revenue, especially transfers from the Centre.
The Delhi budget has projected to collect nearly three-fold more from non-tax revenue, at Rs 12,846 crore compared with Rs 3,819.5 crore as per FY25 Revised Estimates. Centre is expected to provide Rs 12,095.8 crore in grants to the national capital in FY26.
The BJP state government allocated Rs 5,100 crore for its flagship cash transfer scheme, and a Moneycontrol analysis shows that the targetted number of beneficiaries under the programme are likely to be 1.7 million women, who will receive a transfer of Rs 2,500 per month, instead of the initial estimate of 3.8 million. Delhi has approximately 1.7 million BPL card holders.
Delhi has also allocated over Rs 2,000 crore to implement the Ayushman Bharat scheme in the National Capital, providing a health cover of Rs 5 lakh to every family.
Education will remain the top spend for the state government with a 19.3 percent share and Rs 19.291 crore budget, followed by health at Rs 12,893 crore and transport at Rs 12,952 crore. The government is planning to spend Rs 10,694 crore on housing and urban development and another Rs 9,000 crore for water supply and sanitation.
Delhi’s Capex
Roads and bridges are expected to account for over 10 percent of the capex spend at Rs 3053 crore, with road transport getting another 9 percent at Rs 2,423 crore. Medical and public health was the other top category, with the state budgeting Rs 3,452 crore on capex.
Source: www.moneycontrol.com
