Delhi’s first BJP budget in 27 years: Big bets on infra, women’s welfare, and public services

Delhi Chief Minister Rekha Gupta unveiled her maiden budget on Tuesday, presenting an outlay of ₹1 lakh crore for the fiscal year 2025-26. As the finance minister of the state, Gupta outlined a significant 31.5% increase from the previous year’s budget. The FY26 budget prioritises ten key areas, including infrastructure development, electricity, roads, and water. Here’s a breakdown of the highlights for Delhiites.

A key highlight of the budget is the doubling of capital expenditure to ₹28,000 crore, up from ₹15,000 crore under the previous government. This comes after a decline in Delhi's capital expenditure since 2022, including a nearly 31% drop last year.

Allocations for women's safety

Under the Mahila Samman Nidhi scheme, ₹5,100 crore has been set aside to provide ₹2,500 per month to eligible women. The government plans to install 50,000 CCTVs across the city. Additionally, the BJP administration will replace pink tickets with smart cards for free bus rides to curb corruption. Gupta also announced a ₹210 crore allocation for expecting mothers, covering nutrition kits and a ₹21,000 allowance. The budget also allocates ₹2,144 crore for the PM Jan Arogya Yojana to provide free public health insurance. An allocation of ₹30 crore has been made for hosting an 'International Film Festival' in FY26.

Allocations for students

Delhi’s FY26 budget allocates ₹100 crore to establish CM Shri Schools, modelled after PM Shri Schools. The government will also set up language labs across the city and develop Narela as an education hub. For this, the DDA has allocated 160 acres to house campuses of DSEU, DPSRU, GGSIPU, and DTU, with ₹500 crore set aside for its development. Additionally, ₹750 crore has been earmarked to provide free laptops to 1,200 students passing Class 10. The government will also launch NEEV (New Era of Entrepreneur Ecosystem and Vision) to train children in essential skills for modern economies. The project has been allocated ₹20 crore.

Infrastructure and transport

Infrastructure development remains a key priority, with ₹3,843 crore allocated for road and bridge projects across the city. To enhance connectivity in Delhi-NCR, the budget has set aside ₹1,000 crore. The transport sector has received a total allocation of ₹12,952 crore. Additionally, ₹100 crore has been earmarked for a pilot project to shift overhead electrical and high-tension power lines underground, aiming to improve safety and aesthetics.

“Delhi currently has the world's third-largest fleet of electric buses, with 2,152 vehicles—1,752 under DTC and 400 under the DIMTS cluster scheme,” said Gupta during the budget session.

By FY26, this fleet is expected to exceed 5,000 buses. The government has allocated ₹12,952 crore to modernise and enhance the city's public transport system.

A major push has been given to water supply and sanitation, with ₹9,000 crore set aside for clean drinking water, sewer line expansion, and sanitation improvements. Of this, ₹500 crore has been allocated for Yamuna cleaning, ensuring that only treated water enters the river through the decentralisation of 40 sewage treatment plants (STPs). Another ₹500 crore will be used for the repair and upgradation of existing STPs, while ₹250 crore is dedicated to replacing old sewer lines.

The Delhi government has allocated ₹100 crore in the FY26 budget to establish 100 Atal Canteens across the city. Additionally, ₹696 crore has been earmarked for the development of slum clusters and JJ colonies, focusing on improving living conditions for underprivileged communities.

To modernise Delhi’s power and energy infrastructure, ₹3,847 crore has been allocated for underground cabling, smart grids, and solar energy expansion. In environmental initiatives, ₹300 crore has been set aside for pollution control measures, while ₹506 crore has been allocated to the environment and forest department to strengthen green initiatives.

The Delhi Municipal Corporation (MCD) has been allocated ₹6,897 crore for urban development and civic infrastructure. The Delhi Water Board has also received ₹9,000 crore to lay new water pipelines and expand sewer networks, ensuring better water supply and sanitation across the city.

In a significant move, the government has announced the construction of a new jail on the outskirts of Delhi to relocate Tihar Jail, addressing overcrowding and security concerns in the existing facility.

While the budget prioritises infrastructure development, its impact will depend on effective implementation, which remains crucial to watch.