New Delhi – The Delhi Assembly on Friday cleared the revised estimate for capital outlay in the city, raising the capital expenditure from ₹28,115 crore in the Budget Estimates to ₹30,248 crore in the Revised Estimates for 2025-26. This significant increase of over ₹2,100 crore comes even as the overall size of the budget remains unchanged at ₹1 lakh crore.
According to documents tabled in the House, the enhancement in capital expenditure reflects the Bharatiya Janata Party-led government’s stated intent to prioritize long-term asset creation, particularly in transport, education, housing, and urban development sectors.
Record Increase In Capital Expenditure
The government emphasized the scale of the capital expenditure increase in its budget documents, stating, “Capital expenditure is increased from ₹28,115 crore in BE 2025-26 to ₹30,248 crore in RE 2025-26, which is 163% higher than the actual capital expenditure of the previous year.” This dramatic rise underscores the government’s commitment to infrastructure development.
The Delhi Appropriation Bill 2026 was presented by Chief Minister Rekha Gupta, who also holds the finance portfolio, and was passed by voice vote in the Assembly. The revised capital expenditure allocation represents a fundamental shift in the government’s spending priorities toward long-term infrastructure development.
Chief Minister’s Justification For Enhanced Capital Expenditure
CM Gupta defended the increased capital expenditure by highlighting inherited financial challenges. “The previous AAP government left Delhi burdened with massive financial and administrative liabilities. Thousands of crores of rupees were pending across departments including electricity, water, health, transport, education, sports and social welfare, often without any proper accounting,” she stated.
The Chief Minister cited outstanding payments to Delhi Metro Rail Corporation, power distribution companies, Delhi Jal Board, incomplete hospital projects, and schemes launched without budgetary provisions as examples of inherited liabilities. The enhanced capital expenditure aims to address these pending commitments while launching new development initiatives.
Transport Sector Dominates Capital Expenditure Growth
Among the biggest gainers in the revised capital expenditure is the transport sector, including roads and bridges. Its allocation has been raised from ₹12,952 crore in the BE to ₹16,024 crore in the RE. Transport now accounts for about 16% of the total budget, up from 13% earlier, making it one of the government’s primary focus areas for capital expenditure.
A significant portion of this enhanced capital expenditure has gone toward urban mobility projects. The allocation for Delhi Metro Rail Corporation has been increased by ₹2,117 crore, from ₹2,929.66 crore to ₹5,046.66 crore. Officials said the additional funding would help meet equity commitments and support ongoing and future metro projects.
Public Transport Gets Major Capital Expenditure Boost
The capital expenditure for Delhi Transport Corporation has been increased by ₹653 crore, from ₹2,780 crore to ₹3,433 crore—a rise of 23.5%. The government has also nearly doubled the outlay for road strengthening schemes, increasing it from ₹500 crore to ₹996 crore as part of the enhanced capital expenditure plan.
CM Gupta highlighted pollution control initiatives funded through this capital expenditure: “We have already introduced a fleet of 3,500 electric buses that will increase to over 7,500 by the end of this year and 10,000 by end of 2027. We are also revamping all ISBTs.”
Education Receives Largest Share Of Capital Expenditure
Education continued to command the largest share of Delhi’s capital expenditure, with its allocation enhanced from ₹19,291 crore to ₹20,702 crore, increasing its share from 19% to about 21%. Within this capital expenditure allocation, higher education infrastructure saw a sharp rise, with funds for purchasing flats and land for universities increased from ₹500 crore to ₹1,362 crore.
Housing And Urban Development Capital Expenditure
Housing and urban development received increased capital expenditure, rising from ₹10,694 crore to ₹11,754 crore. This includes an increase of ₹128 crore for unauthorized colony development, where capital expenditure will fund basic infrastructure such as roads, drainage, water supply, and street lighting.
The Municipal Corporation of Delhi received an extra ₹1,031 crore in capital expenditure, with its allocation increasing from ₹10,397 crore to ₹11,428 crore. The enhanced funding will strengthen municipal services, including waste management and sanitation infrastructure.
Utility Sector Capital Expenditure Enhancements
In the power sector, subsidies to electricity consumers through discoms increased by ₹400 crore to ₹4,000 crore. Water and sewerage infrastructure received priority in capital expenditure allocation, with loans to Delhi Jal Board raised by ₹1,000 crore to ₹3,500 crore. The state’s share under the Yamuna Action Plan increased by ₹180 crore.
Project-Specific Capital Expenditure Provisions
Several project-specific provisions were included in the capital expenditure plan: ₹500 crore to clear legacy liabilities related to Eastern and Western Peripheral Expressways, ₹825 crore for projects under the Special Assistance to States for Capital Investment scheme, and ₹100 crore to complete the Barapullah Phase-III elevated corridor.
Revenue Expenditure Reduced
Despite the capital expenditure increase, revenue spending was reduced from ₹71,884 crore to ₹69,752 crore. This shift from revenue to capital expenditure reflects the government’s focus on asset creation over operational expenses.
Mahila Samman Scheme Remains Unfunded
Despite broad increases in capital expenditure, the revised budget made no new allocation for the women and child welfare department. A ₹5,100 crore allocation under Mahila Samridhi Yojana remains unused, and officials indicated the promised ₹2,500 monthly payment scheme is unlikely to launch before the next budget, despite being a key electoral pledge.
