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The Delhi government has revised its capital expenditure for FY26 to INR 30,248 crore, signalling a stronger push towards infrastructure-led urban development. Key sectors such as transport, housing, education, roads, and civic services have received higher allocations. Spending on transport has risen sharply, led by increased funding for Delhi Metro expansion and road projects. Education allocations now form over one-fifth of the total budget, with higher capital spending on land and housing for institutions. Housing, municipal services, water utilities, and Yamuna rejuvenation have also seen enhanced support. The revised budget reflects a clear focus on asset creation, mobility, urban renewal, and long-term city infrastructure, with positive implications for real estate, housing supply, and overall urban growth in Delhi.
The Delhi government has revised its capital expenditure for the 2025-26 financial year to INR 30,248 crore, up from the earlier budget estimate of INR 28,115 crore, to accelerate key projects across urban development, transport, housing, education and Yamuna rejuvenation. Advertisement
Chief Minister Smt Rekha Gupta, who also holds the Finance portfolio, presented supplementary demands for grants in the Delhi Assembly. The revised estimates were passed through a voice vote. This marks the first set of budget revisions under Gupta's tenure, following the presentation of her maiden budget in March 2025.
According to official documents, the total allocation under schemes, programmes and projects for 2025-26 has been revised marginally downward from INR 59,300 crore to INR 57,850 crore. However, capital expenditure has been increased, signalling a sharper focus on asset creation, infrastructure delivery and long-term urban development.
The transport sector has seen one of the largest revisions. Allocations for transport, including roads and bridges, have been raised to INR 16,024 crore from the earlier INR 12,952 crore. A major portion of this increase is directed towards metro rail expansion and road infrastructure. Funding for the Delhi Metro Rail Corporation has been increased by INR 2,117 crore, taking the revised allocation to INR 5,046.66 crore for the year.
Education spending has also been strengthened. The revised allocation for the sector stands at INR 20,702 crore, up from INR 19,291 crore. With this increase, education now accounts for around 21 per cent of the total budget of INR 1 lakh crore. Capital allocations include higher spending for land and housing assets, with funds for the purchase of flats and land for universities raised to INR 1,362 crore from INR 500 crore.
Housing and urban development allocations have been revised upward to INR 11,754 crore from INR 10,694 crore. This increase supports ongoing urban infrastructure projects, redevelopment initiatives and services linked to housing and municipal administration. Funding for the Municipal Corporation of Delhi has been enhanced by INR 1,031 crore to INR 11,428 crore, aimed at improving civic services and local infrastructure.
Road infrastructure has received a notable boost, with allocations under the road strengthening head nearly doubling from INR 500 crore to INR 996 crore. An additional INR 100 crore has been approved for completing the long-pending Barapullah Phase III elevated corridor, a project expected to ease congestion in south and central Delhi.
Water and transport utilities have also seen higher allocations. Loans to the Delhi Jal Board have been increased to INR 3,500 crore from INR 2,500 crore, while funding for the Delhi Transport Corporation has risen to INR 3,433 crore. Power subsidies payable to distribution companies have been revised upward to INR 4,000 crore.
The government has also increased its contribution to the Yamuna Action Plan, raising the state share to INR 280 crore. Funds for the development of unauthorised colonies have been revised to INR 630 crore, reflecting continued focus on regularisation and basic infrastructure in these areas.
Overall, the revised capital spending indicates a stronger push towards infrastructure-led urban growth, with implications for real estate development, mobility, housing supply and public utilities across the city.
Source: PTI
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