Delhi Budget 2025-26: a Rs 1 lakh crore outlay amid controversy over missing economic survey

Delhi Chief Minister Rekha Gupta, who also holds the finance portfolio, presented a Rs 1 lakh crore budget for the fiscal year 2025-26 on Tuesday. Her maiden budget was significantly higher than the Rs 80,000 crore estimate, marking a 31.5 per cent increase from the previous Aam Aadmi Party (AAP) government’s Rs 76,000 crore budget.

However, the absence of the Economic Survey from the proceedings has fuelled a political storm, with the AAP accusing the Bharatiya Janata Party (BJP) government of masking fiscal realities.

A larger budget but at what cost?

The BJP government’s budget nearly doubles the capital expenditure to Rs 28,000 crore compared to AAP’s Rs 15,000 crore. The government has allocated substantial funds across multiple sectors: Rs 5,100 crore for monthly financial assistance of Rs 2,500 to eligible women; Rs 12,952 crore for modernising public transport; Rs 12,000 crore for road and flyover repairs, and Rs 750 crore for free laptops to meritorious students.

The budget also sets aside Rs 500 crore for the cleanup of the Yamuna river and Rs 696 crore for slum cluster development.

While the budget does tout significant increases in infrastructure spending and welfare schemes, critics argue that essential sectors such as health and education have suffered major cuts. The education sector, which previously enjoyed a high allocation under AAP, has seen its share drop below 20 per cent, sparking concerns over the future of government schools.

Similarly, the health sector’s allocation has plummeted from 16-17 per cent to just 13 per cent, raising fears about the sustainability of Delhi’s acclaimed Mohalla Clinics and free healthcare initiatives.

AAP’s outrage over Economic Survey

The AAP was quick to challenge the BJP government, questioning why the Economic Survey was not presented before the budget announcement. Former Delhi CM Atishi launched a scathing attack at a press conference alleging that the BJP’s budget figures were baseless and designed to mislead the public. “If there was a strong financial foundation for this budget, why wasn’t the Economic Survey tabled? The government knows that presenting real figures would expose its hollow claims,” Atishi remarked.

She further accused the BJP of attempting to dismantle the previous government’s health and education models, stating, “For the first time in a decade, education funding has dropped below 20%, and the MCD allocation has been slashed by Rs 1,526 crore. This is a clear attempt to paralyze Delhi’s public services.”

BJP’s infrastructure focus

Defending the budget, CM Rekha Gupta called it “historic,” highlighting the BJP’s commitment to turning Delhi into a “world-class capital” by aligning its development efforts with the NDA-led central government. The government has pledged Rs 1,000 crore for improved connectivity in the NCR, plans to relocate Tihar Jail, and establish language labs across Delhi.

Gupta dismissed AAP’s criticism, stating that the budget was designed with “Delhi’s long-term progress in mind.” However, the absence of the Economic Survey remains a major sticking point, raising questions about the transparency of the state’s financial health.

The BJP, however, remained firm in its defence, claiming that the budget paves the way for Delhi’s transformation and long-term development. As the political battle over Delhi’s finances intensifies, the absence of an Economic Survey will surely continue to raise questions about the transparency and sustainability of the BJP’s fiscal strategy.