Delhi presents green-focused budget with emphasis on transport, education and welfare

Delhi Chief Minister Rekha Gupta presented a Rs 1,03,700 crore budget for the 2026–27 financial year, marking a 3.7% increase over the previous year’s revised estimates and projecting a revenue surplus of Rs 9,092 crore.
Green budget at the core

The central theme of the fiscal plan is sustainability, with the government branding it as a “green budget”.

“I am pleased to announce that we have made some special efforts to meet the needs of Delhi. This time, we have presented Delhi’s budget as a ‘green budget’. We have seen every plan through a green lens,” Gupta said.

Around 21.4% of the total outlay — Rs 22,236 crore — has been earmarked for environmental sustainability. Gupta added that “every policy of this budget has an environmental impact, every plan has a natural impact, and every decision has the worries of future generations.”

The transport sector received Rs 12,613 crore, with plans to induct 6,130 new electric buses, taking the total fleet to 7,500 by 2027. Gupta said the move would “reduce the carbon footprint of our public transport system significantly.”

Education and health allocations

Education remains the largest recipient, with Rs 19,326 crore — 18.6% of the total budget. This includes Rs 200 crore for new school buildings and smart boards in more than 8,700 classrooms.

A key initiative is the allocation of Rs 90 crore to provide free bicycles to 1.3 lakh Class IX girl students in government schools. Gupta said, “The proposals reflect a broader effort to improve both access and quality across government institutions.”

The health sector has been allocated Rs 12,645 crore. The government plans to establish 750 new health centres and has earmarked Rs 787 crore for essential medicines and high-tech equipment.

For the expansion of the Ayushman Bharat scheme, Rs 202 crore has been set aside. Gupta said the aim is to ensure no citizen is denied treatment, adding that “health is a fundamental right that we are committed to upholding.”

Addressing water and Yamuna concerns

The Delhi Jal Board has been allocated Rs 9,000 crore to tackle water supply and drainage issues. The plan includes increasing sewage treatment capacity from 707 MGD to 814 MGD.

Gupta said the investment would ensure “no resident has to hassle for water and stand in line for water tankers.”

The budget also includes measures to clean the Yamuna river through upgraded treatment plants. Earlier in January, Gupta had launched a mission-mode plan to restore the river, setting a 2028 deadline to stop untreated sewage discharge.

The plan includes expanding treatment capacity to 1,500 MGD, upgrading existing plants by 2027, and constructing 35 decentralised facilities by 2028.

Social welfare and inclusivity

A major welfare measure is the Mahila Samriddhi Yojana, with an outlay of Rs 5,110 crore, providing Rs 2,500 per month to eligible women. Gupta said, “The Delhi government’s focus is not just on launching schemes but on ensuring their effective implementation for financial independence.”

The budget also extends free bus travel under the “Pink Saheli” cards to the transgender community. Additionally, Rs 10 crore has been allocated for “Rani Haats” to promote women entrepreneurs.

The Municipal Corporation of Delhi has been allocated Rs 11,666 crore to improve sanitation and expedite the clearing of landfill sites.

To address air pollution, Rs 1,352 crore has been earmarked for the “Dust-Free Roads” project, covering 750 km of road stretches.

Urban development includes Rs 2,885 crore for Delhi Metro expansion and Rs 100 crore for 13 mini secretariats aimed at decentralising governance.

Economic outlook

The government has projected a GSDP growth rate of 5.09%. It expects to generate Rs 74,000 crore from its own tax revenue, with GST contributing Rs 43,500 crore.

LPG allocation and black market crackdown

The government has allocated Rs 260 crore to provide two free LPG cylinders per household — one during Holi and another during Diwali.

This measure aims to reduce the financial burden on residents during major festivals.

However, recent enforcement actions highlight concerns around LPG supply. In March, several arrests were made over the hoarding and black marketing of cylinders amid West Asian geopolitical tensions.

On March 21, 2026, three individuals were arrested in Mahipalpur for illegally hoarding 74 cylinders. Police said they were transferring gas using metal pipes to manipulate supply and inflate profits.

In another case in Mundka, 610 commercial cylinders were recovered from a godown operating as Guruji Indane Gas Service. Though authorised, the distributor was found storing stock from multiple companies in violation of the Essential Commodities Act.

Investigators said cylinders were being sold on the black market for between Rs 5,000 and Rs 12,000.

Further raids in Rajpur Khurd, Khyala and Shakarpur led to additional seizures and arrests, including 223 cylinders from an unlicensed site.

Stakeholder consultations

Ahead of the budget session, Gupta held consultations with various groups, including members of the transgender community on March 20, as well as gig workers and labourers.

“The Delhi government’s budget session, scheduled to begin on March 23, will be the government’s second budget. We have consulted with people from various sections of society to ensure that the Delhi government presents this budget in accordance with their suggestions,” she said.

She added that the aim is to address public concerns, improve infrastructure and “reach out to the public with a roadmap for a developed Delhi… Their participation is the biggest strength of this budget.”