Local Bodies See 65% Increase in Delhi Budget Allocation

Local Bodies See 65% Increase in Delhi Budget Allocation.webp

New Delhi, March 24 The Delhi government announced its budget for 2026-27 on Tuesday, earmarking ₹11,412 for local bodies as part of its push towards a "developed and green Delhi," Chief Minister Rekha Gupta said in her budget speech.

In her speech, Gupta stated that the Delhi government has allocated ₹11,266 crore to the Municipal Corporation of Delhi (MCD) and a total financial assistance of ₹146 crore has been proposed for the New Delhi Municipal Council (NDMC) and the Delhi Cantonment Board (DCB), with the government stating that the "triple engine" approach would accelerate development efforts.

The FY27 budget saw a 65.47 per cent increase in funding allocation to local bodies from the previous year, where the Delhi government had allocated ₹6,897 crore to the local bodies in the 2025-26 budget.

Delhi Chief Minister Rekha Gupta, who also holds the finance portfolio, presented the budget for the 2026-27 financial year with a total outlay of about ₹1,03,700 crore and said that the national capital is progressing rapidly with the "triple engine" government.

Describing it as a "green budget," the chief minister said the city is going through a phase of transition and flagged that a "culture of freebies" had affected the growth rate, adding that the period between 2018 and 2020 saw a fall in revenue.

Gupta announced that around ₹1,000 crore has been proposed in the budget under various schemes for strengthening and improving MCD roads.

"The government also plans to develop five new modern parking facilities in collaboration with the civic body to improve urban mobility," Gupta said.

To tackle pollution, ₹204 crore has been allocated to the MCD for control measures, Gupta said.

She said the government is working to more than double the city's waste processing capacity from 7,000 metric tonnes per day to 15,000 metric tonnes.

Provisions have been made for the expansion of waste-to-energy plants at Narela, Okhla, Ghazipur, and Tehkhand.

Highlighting progress in reducing legacy waste, Gupta said Ghazipur has seen a 16 per cent reduction, Bhalaswa 54 per cent, and Okhla 68 per cent.

"Waste is not waste… it is wealth," Gupta said in her budget speech, adding that around 1,500 tonnes of cow dung generated daily in the city will be processed to produce energy. "This initiative is expected to reduce emissions, cut fuel imports and move Delhi towards a circular economy model," Gupta said in her speech.

Gupta in her budget speech, said that additional funding has been provided in the budget to accelerate the cleanliness drive in the national capital.

"₹2,300 crore has been separately allocated to MCD for purchasing mechanical road sweeping machines and litter pickers," she added.
 
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budget 2026-27 circular economy cow dung processing delhi cantonment board (dcb) delhi government financial assistance local bodies municipal corporation of delhi (mcd) new delhi municipal council (ndmc) parking facilities pollution control revenue road infrastructure urban mobility waste management waste processing capacity
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