Union Budget 2025-26 allocates rs 1,348 crore to Delhi; grants-in-aid remains unchanged, Rs 100 crore hike in loans

The Union Budget 2025-26 has allocated ₹1,348 crore to the National Capital Territory (NCT) of Delhi, reflecting a ₹100 crore increase in loans and advances while maintaining grants-in-aid at ₹968 crore, the same as last year. Notably, Delhi has not been allocated any share in central taxes and duties for the second consecutive year.

Breakdown of Delhi’s Allocation:

  • Grants-in-aid: ₹968 crore (unchanged from last year)
  • Loans and advances: ₹380 crore (up from ₹280 crore last year)

This allocation remains below 2022-23’s inclusion of ₹325 crore in central taxes and duties, which has been omitted since the 2023-24 budget.

Other Budget Provisions for Delhi:

  • Compensation for 1984 riots victims: Enhanced to ₹2 crore
  • Grants to Union Territory Disaster Response Fund: ₹15 crore
  • Central assistance to Union Territories: ₹951 crore
  • Externally Aided Projects: ₹380 crore earmarked for the Chandrawal Water Treatment Plant, aiming to improve water infrastructure

Delhi Police Allocation:

The budget allocated ₹12,259.16 crore to Delhi Police for 2025-26, representing a 7.52% increase from the previous year’s ₹11,400.81 crore.

Budget Context and Middle-Class Focus:

Presenting the budget on February 1, 2025, Finance Minister Nirmala Sitharaman emphasized measures targeted at the middle class, seen as pivotal ahead of the Delhi Assembly elections on February 5. The Aam Aadmi Party (AAP), led by Arvind Kejriwal, has highlighted middle-class concerns through its 7-point manifesto, accusing previous governments of neglecting this group.

Meanwhile, the government’s approval of the 8th Central Pay Commission will impact nearly 50 lakh central government employees and 65 lakh pensioners, a move expected to address salary structures, allowances, and pensions.

Yearly Allocation Overview:

Year Initial Allocation (₹ Crore) Revised Allocation (₹ Crore)
2025-26 1,348
2024-25 1,168 1,248
2023-24 1,168 1,168
2022-23 960 1,168

The opposition, however, criticized the budget as insufficient and politically motivated, calling it a “band-aid for bullet wounds.”