In keeping with its promise to restore the lost ‘ease in living’ in the city, the new government has embarked upon a restorative budget that promises much. With central government’s backing, funds should not be a problem, effective implementation is the key.
Delhi Chief Minister Rekha Gupta presented a Rs. 1 lakh crore budget for 2025-26, a 31.5% increase from the previous year. Capital expenditure has doubled to Rs. 28,000 crore. Key allocations include Rs. 2,144 crore for PM Jan Arogya Yojna and Rs. 5,100 crore for monthly payments to eligible women. Improved Delhi-NCR connectivity receives Rs. 1,000 crore.
CM Rekha Gupta announced the formation of a “Traders’ Welfare Board”, ‘Global Investment Summit’ to be held every two years, allocated Rs. 500 crores for repair, upgradation of STPs, Rs. 250 crores for replacement of old sewer lines and Rs. 3843 crores are allocated for road and bridge infrastructure. The budget makes a provision of Rs. 30 crores for rebranding of Delhi as a tourism destination, much on the lines of Kerala’s God’s Own Country and others. Other areas include:
Rural Delhi: Rs. 1,000 crore has been allocated for the overall development of rural and urban villages across Delhi. Delhi’s rural areas have strongly supported BJP, giving the party 13 out of 14 constituencies with a significant rural and farming presence. As per the 2011 census, Delhi’s rural population is 4,19,042 out of a total 1,67,87,941 population, with only 35 rural villages remaining in 2019, down from 300 in 1961.
Additionally, Rs. 4.9 crore was allocated to provide Delhi’s farmers with Rs. 3,000 annually, supplementing the Rs. 6,000 under the ‘Pradhan Mantri Kisan Samman Nidhi’ scheme. Gupta also allocated Rs. 1,157 crore to the ‘development department’ for rural and agricultural development.
Agriculture’s contribution to the Gross State Value Added of Delhi reduced to 0.32% in 2023-24 against 0.94% in 2011-12. Therefore, this allocation should do well to address this downslide.
Amid ‘Gaumata ki jai chants by the ruling party, Gupta allocated Rs. 40 crore for a ‘model gaushala’ in Ghumanhera village, southwest Delhi.
Health Sector: Rs. 12,893 crore has been given to upgrade the health sector. The government will complete pending projects of 24 hospitals, after completion of which Rs. 16,186 beds will be added to government hospitals. The budget includes an allocation of Rs. 320 crore for setting up 400 health and wellness centres, along with “Ayushman Arogya Mandirs” to improve access to primary healthcare services. An additional 10 crore allocation for the Ayushman Digital Mission will help modernising records into an integrated healthcare data system. Two new medical colleges will also be opened.
A total of Rs. 1666.66 crore has been proposed for PM- ABHIM scheme, under which critical care blocks and diagnostics will be spent.
Food for All: To mark the centenary celebrations of BJP’s first Prime Minister Atal Behari Vajpayee, there would be roll out of 100 Atal canteens across the capital. The Rs. 100 crore scheme aims to set up eateries in every slum cluster, offering hot cooked meals for just Rs. 5 to support those in need. The scheme also subserves the BJP’s promise to launch subsidised canteens in the run-up to the Delhi Assembly elections.
The Yamuna: The Yamuna has emerged as a significant focal point in the city’s electoral landscape. Rs. 500 crore have been allocated for constructing 40 treatment plants to process sewage and prevent the contamination of the river water. In February this year, ahead of the assembly polls, the faecal coliform level, indicative of sewage in the water, was 6,400 times above the acceptable standard and much beyond the 2021 pollution records.
The Tihar Jail: Relocate the Tihar Jail to the city’s outskirts is a plan in works, while setting aside Rs. 10 crore in the 2025-26 budget for survey and consultancy services related to the shifting of the jail. The Tihar Jail is one of India’s largest prison complexes comprising nine prisons spread over more than 400 acres. Gupta also said a society would be set up for the reformation and rehabilitation of prisoners by developing their overall skills through various skill- imparting programmes and it would professionalise the functioning of various factories and manufacturing units of the jails.
“The products manufactured in the jail complexes of Tihar, Rohini and Mandoli will be given preference in procurement by offices and departments working under Delhi govt,” she said.
In 1958, a central jail was commissioned at Tihar with a sanctioned capacity of 1,273 prisoners. Tihar has nine jails and houses 13,000 inmates in a space meant for 5,200.
Fire Safety: The upgradation of the Delhi fire service (DFS) headquarters into a multi-storey, hi-tech and advanced building was announced, for which the government earmarked Rs. 125 crore for capital projects under DFS. To enhance fire response in congested areas, the government will introduce two-wheelers as first- response vehicles and deploy small fire engines at 100 different locations The budget has allocated Rs. 110 crore for modernising fire services, including procuring 17 bowsers, multi-articulated fire towers, aerial ladder platforms and vans.
Additionally, 24 multiutility vehicles will be equipped with high-pressure pumps, and live cameras will be installed for real-time monitoring. A consultant will be appointed to upgrade the DFS control room, implement Ai based dispatch solutions and simplify the fire safety certificate process.
Senior Citizens: The government has announced an increase in the monthly financial assistance for senior citizens, raising the amount from Rs. 2,000 to Rs. 2,500 for those aged 60 to 69, while those aged above 70 will receive Rs. 3,000 per month.
Waterlogging and Flooding: An allocation of Rs. 150 crore under the new ‘Remodelling of Drains for Flood Control’ scheme. This initiative, managed by the Irrigation and Flood Control department, is part of an overall Rs. 503 crore allocation for the department, covering other related schemes as well. Waterlogged roads and submerged vehicles have become a symbol of the city during the monsoon. This project will enhance the water-carrying capacity of drains to prevent waterlogging.
The plan also includes cleaning and desilting open water bodies for better flood control and procuring modern machinery to manage waterlogging more effectively.
Education: With a commitment to digital learning, the government announced free laptops for 1,200 Class 10 students and set aside crore for the initiative. For the development of multilingual skills, 100 new language labs named after Dr A.P.J. Abdul Kalam will be established, offering courses in French, German, English, Spanish, and other languages. The project has been allocated 21 crore.
The launch of Mahamana Pt Madan Mohan Malviya Vidya Shakti mission to provide professional guidance to students preparing for JEE, Neet, CLAT, CA, and CUET examinations. A sum of 21 crore has been set aside for the project.
Power: The power department was allocated Rs. 3,847 crore in the 2025-26 with Delhi govt’s commitment to providing 24- hour uninterrupted electricity supply to all residents. The Delhi govt will sign an MoU with the ministry of new and renewable energy to implement the ‘PM Surya Ghar: Free Electricity Scheme’, under which residential consumers in Delhi will receive a subsidy of up to Rs. 78,000 for solar energy installations. Another new initiative, ‘PM Surya Ghar: Free Electricity Scheme – State Top Up’, proposed with a Rs. 50-crore budget, aims to equip 2.3 lakh residential rooftops with solar energy over the next three years, said CM. Govt also plans to remove the web of overhead cables across Delhi; a budget of Rs. 100 crore has been allocated.
