The Union Budget 2025-26 has allocated ₹1,348 crore to the National Capital Territory (NCT) of Delhi, reflecting an increase of ₹100 crore in loans and advances but maintaining grants-in-aid at the previous year’s level.The total allocation for Delhi includes ₹968 crore as grants-in-aid and ₹380 crore as loans and advances, marking a ₹100 crore increase from last year’s ₹280 crore. However, for the second consecutive year, Delhi has not received any share in central taxes and duties. Previously, ₹325 crore was allocated in 2022–23, but this category has been omitted since 2023–24.The budget also includes several key allocations aimed at addressing compensation, disaster response, and infrastructure development in Delhi. Among the provisions is an enhanced compensation of ₹2 crore for the victims of the 1984 riots.
Additionally, ₹15 crore has been allocated as grants towards the Union Territory Disaster Response Fund. Central Assistance to Union Territories has been allocated ₹951 crore, aimed at supporting various developmental schemes.Moreover, an additional ₹380 crore has been earmarked for Externally Aided Projects, specifically for the Chandrawal Water Treatment Plant, which is expected to improve the city’s water infrastructure and enhance the quality of water supply.Notably, there are no grants in lieu of Delhi’s share in central taxes and duties. The grant, which was ₹325 crore in 2022-23, has been discontinued since 2023-24.Previous years’ Budget allocations:
YearInitial Allocation (₹ Crore)Revised Allocation (₹ Crore)2025-261,348-2024-251,1681,2482023-241,1681,1682022-239601,168
Delhi Police Budget AllocationFinance Minister allocated ₹12,259.16 crore in the Union Budget for 2025-26, an increase of 7.52% from the previous fiscal year. For the financial year 2024-25, the budget allocated to Delhi Police was ₹11,400.81 crore, which has been raised to ₹12,259.16 crore for the upcoming fiscal year.Budget aimed at Middle-classPresenting her eighth consecutive budget in Parliament on February 1, Finance Minister Nirmala Sitharaman outlined the budget aimed at benefiting the ‘middle class’, which coincidentally forms a significant portion of the electorate in the upcoming Delhi elections scheduled for February 5, with results set to be announced on February 8. AAP, which won 62 of the 70 assembly seats in 2020, is aiming for a third consecutive term.The government’s focus on this group comes as Delhi heads into a crucial electoral contest with Kejriwal’s Aam Aadmi Party recently releasing its 7-point manifesto aimed at ‘middle class’, a section he claims has been ignored by successive governments. He accused other political parties of treating the middle class as “just an ATM for the government”.In a video message, Kejriwal said, “The middle class has been ignored and exploited solely for tax collection. Despite being the backbone of the economy, their issues have remained unaddressed.”Meanwhile, the Prime Minister recently approved the establishment of the 8th Central Pay Commission, which is expected to impact nearly 50 lakh central government employees, including defence personnel, as well as 65 lakh pensioners. The approval of this commission will play a pivotal role in reviewing salary structures, allowances, and pensions for these groups.However, the opposition has criticised the Union Budget, labeling it as offering “band-aid for bullet wounds” and accused the BJP-led Centre of trying to win over voters in Bihar and Delhi with its announcements.
