In outlining the financial framework of the Budget 2026–27, Chief Minister Rekha Gupta provided a detailed overview of how the government plans to mobilize resources to fund its ambitious development agenda. The strategy relies on a combination of tax revenue, central assistance, non-tax income, and capital receipts, ensuring a balanced and sustainable fiscal structure.
Budget Composition and Allocation Structure
The Chief Minister stated that out of the total budget of ₹1,03,700 crore, a sum of ₹62,550 crore has been earmarked for schemes, programmes, and development projects. These allocations are aimed at driving infrastructure expansion, social welfare, and public service delivery across the national capital.
Additionally, ₹41,150 crore has been designated as establishment expenditure, which includes administrative and operational costs necessary for running government departments and institutions.
From a broader fiscal perspective, ₹72,900.28 crore has been classified under the revenue budget, covering recurring expenditures such as salaries, subsidies, and service delivery. Meanwhile, ₹30,799.72 crore has been allocated under the capital budget, focusing on long-term investments such as infrastructure development, public assets, and major projects.
Tax Revenue as the Primary Source
A significant portion of the budget will be financed through the government’s own tax revenue. The Chief Minister stated that approximately ₹74,000 crore will be mobilized through taxes, highlighting the strength of Delhi’s internal revenue generation.
Goods and Services Tax (GST) is expected to be the largest contributor, generating ₹43,500 crore. Value Added Tax (VAT) is projected to contribute ₹8,500 crore, while stamp duty and registration fees are estimated to bring in ₹11,000 crore.
State excise revenue is expected to generate ₹7,200 crore, reflecting income from liquor-related taxes, while vehicle taxes are projected to contribute ₹3,800 crore. These figures underline the diversified nature of Delhi’s tax base and its reliance on multiple revenue streams.
Non-Tax Revenue and Central Assistance
In addition to tax collections, the government expects to generate ₹900 crore through non-tax revenue sources. These may include fees, fines, and other administrative charges collected by various departments.
Central assistance also forms an important part of the funding structure. The government is expected to receive ₹3,931.16 crore under centrally sponsored schemes, which support sector-specific programmes such as healthcare, education, and infrastructure.
Further, ₹968.01 crore will be received as central assistance and other grants. Additional funds will come from various national-level programmes, including ₹591 crore from the Central Road Fund, ₹1,500 crore from the National Mission for Clean Ganga, ₹100 crore from the National Disaster Management Authority, and ₹1.90 crore allocated for the Delhi Assembly project.
Capital Receipts and Borrowings
To support capital expenditure and infrastructure development, the government will also rely on capital receipts. The largest component of this is borrowing from the market, with ₹16,700 crore expected to be raised through loans facilitated by the Reserve Bank of India.
In addition, the government will receive an interest-free loan of ₹2,500 crore under the SASCI scheme, which is aimed at supporting infrastructure and development projects.
External assistance will also contribute to capital receipts, with ₹380 crore expected from externally aided projects such as the Chandrawal water drainage project.
The government will also recover ₹487.93 crore from loans and advances previously extended, adding to its financial resources. Moreover, an opening balance of ₹1,640 crore will be available at the start of the financial year, providing additional liquidity.
Balanced Financial Strategy
The overall funding plan reflects a balanced approach, combining internal revenue generation with external support and borrowing. By maintaining a strong tax base and leveraging central assistance and market borrowings, the government aims to ensure adequate financial resources without compromising fiscal discipline.
Conclusion
The financing strategy of the Delhi Budget 2026–27 demonstrates a comprehensive and structured approach to resource mobilization. With a strong reliance on tax revenue, supported by grants, non-tax income, and borrowings, the government has laid out a framework to sustain its development priorities.
This diversified revenue model is expected to support large-scale infrastructure projects, welfare schemes, and environmental initiatives, ensuring that the capital continues to progress toward sustainable and inclusive growth.
