Delhi subsidy bill rises on power, free bus travel in 2025-26; IT spending sees sharp cuts

The subsidy bill of the Delhi government towards the free bus travel scheme for women and electricity has enhanced substantially even as funds for its ambitious IT projects have faced cuts, according to revised budget estimates for the current year.

The modified revised estimates (RE) figures released recently by the Finance department showed that the outlay for power subsidy has been increased to around Rs 4,200 crore, compared to the Budget Estimate (BE) of Rs 3,849 crore for the year.

The revision reflects additional requirements to clear pending dues and meet higher demand under the electricity subsidy scheme due to growing consumer numbers.

The Delhi government provides free electricity up to 200 units of monthly consumption, and those using 201 to 400 units are paid a 50 per cent subsidy.

The RE for the Transport department showed that subsidy to DTC for female commuters (eligible for free travel in public transport buses) has gone up to Rs 328 crore against the budget estimate (BE) of Rs 240 crore. The subsidy for Cluster service for free travel is also revised to Rs 342 crore from the BE of Rs 200 crore in 2026-27.

The total amount of subsidy to female commuters has increased to Rs 670 crore against the BE of Rs 440 crore, documents showed.

According to budget (RE) documents, the Information Technology department had an outlay of Rs 690.5 crore for the 2025-26 financial year, but revised estimates peg actual spending at just Rs 215 crore, a steep shortfall of nearly 69 per cent.

Officials said the RE estimates show cuts in various IT initiatives, including the Unified Data Hub project, which was allocated Rs 250 crore.

The RE for the project was slashed to Rs 6 crore now, as the current fiscal is around closure.

Allocations for various e-governance initiatives were also reduced from Rs 150 crore to just Rs 15 crore, suggesting a slowdown in implementation, officials said.