New Delhi, March 23 Funding for the Municipal Corporation of Delhi (MCD) has improved, but effective utilization and coordination among agencies remain key to translating these allocations into cleaner streets, better schools, and improved public health services, the Delhi Economic Survey 2025-26 has stated.
The survey, presented in the Assembly by Chief Minister Rekha Gupta on Monday, also stated that the steady increase in allocations comes at a time when Delhi is almost entirely urbanized, placing immense pressure on civic infrastructure, including waste management, school education, and neighborhood-level development.
While funding has improved, effective utilization and coordination among agencies remain key to translating these allocations into cleaner streets, better schools, and improved public health services, the survey noted.
According to the survey, overall devolution to local bodies increased to Rs 6,897.01 crore in 2025-26 (Budget Estimates), up from Rs 6,231.79 crore in 2024-25, indicating a broader push to support urban services.
A large share of this continues to flow to the MCD. Under Basic Tax Assignment (BTA), the corporation is set to receive Rs 3,282.26 crore in 2025-26, compared to Rs 2,983.87 crore in the previous financial year, which is an increase after unification.
The NDMC is also set to receive Rs 32.37 crore, and the Delhi Cantonment Board is set to receive Rs 22.19 crore under BTA. The total allocation under BTA to local bodies stands at Rs 3,336.82 crore, according to the survey.
The survey stated that sector-wise allocations also show a similar trend. Funding for education, which is crucial for the MCD-run primary schools that lakhs of children depend on, has increased from Rs 2,064.82 crore in 2024-25 to Rs 2,293.52 crore this year.
In the health sector for local bodies, which includes municipal hospitals and dispensaries often accessed by lower-income families, allocations are likely to go up from Rs 403.96 crore to Rs 464.16 crore.
Urban development grants for local bodies, used for roads, drains, and sanitation infrastructure, have also risen from Rs 729.55 crore last year to Rs 802.51 crore in 2025-26.
