Budget 2026: Delhi's kitty stays intact at Rs 1,348 cr; funds for water, disaster relief and high-speed rail

NEW DELHI: The allocation for Delhi under the Union Budget has remained unchanged at Rs 1,348 crore. The amount under revenue (Rs 968 crore) and capital (Rs 380 crore) heads are also the same as in the budget estimates for 2025-26. However, the allocation for FY26 was later reduced to Rs 1,242 crore in the revised estimates.

This time, Delhi has received Rs 951 crore as central assistance for UTs, intended to finance various schemes of the city govt. An additional central assistance of Rs 380 crore has been given for the Chandrawal water treatment plant as an externally aided project.


The city has also received a grant of Rs 2 crore for enhanced compensation to 1984 anti-Sikh riots victims and Rs 15 crore as grant towards contributions to Union Territory Disaster Response Fund, meant for providing relief in case of notified calamities like earthquakes, droughts and floods.

Congratulating Nirmala Sitharaman for presenting a "spectacular" Budget, CM Rekha Gupta said a provision of Rs 1.4 lakh crore to the states as rural and urban local body and disaster management grants will help them move forward.

The CM said the proposed Delhi-Varanasi high-speed rail corridor is a historic step towards fulfilling the resolve of Viksit Bharat.

"It (the Budget) has something for every segment, especially generation of employment for youth, conservation and development of cultural heritage, boosting sports, providing rebates for availing education and health services in foreign countries," she said after watching its presentation along with locals at an event in northwest Delhi's Tri Nagar.

Delhi BJP president Virendra Sachdeva said the Budget aims at promoting the construction industry, tourism, pilgrimage site development and medical tourism. "It encourages sports and budding talents and will give wings to Young India," he said.

Hailing the new Income Tax Act to be implemented from April 1, Sachdeva said, "By not imposing new taxes, govt provided major relief to the middle class, and by granting incentives and support to foreign data service-related companies in India, new avenues of employment have been opened up for the youth."

He lauded the reduction in customs duty on medicines for cancer and seven other diseases, saying the step reflects the "sensitive and compassionate face of the Modi govt". Also, concessions on smartphones will benefit the youth and cheaper microwave ovens will help homemakers, he added.

Water minister Parvesh Verma said the assistance for the Chandrawal plant is a major step towards strengthening Delhi's water infrastructure and ensuring 24x7 clean water supply for lakhs of families. This project will also improve distribution efficiency and long-term water security for the city, he added.

"Equally important is the Centre's support for urban infrastructure, roads, flyovers and connectivity projects, which will help decongest traffic, improve mobility and enhance the quality of life for Delhiites. Under the visionary leadership of Modiji, Delhi is being integrated into the larger vision of Viksit Bharat, be it through modern water systems, world-class road networks, flyovers or high-speed rail connectivity," Verma said.

However, AAP national convenor Arvind Kejriwal said, "The biggest problems in India are unemployment and inflation, but the Budget has no blueprint for creating jobs. It will result in an increase in inflation and unemployment."