Delhi Budget 2026-27: Local Bodies Funding Up 65%

New Delhi, Mar 24 (PTI) The Delhi government on Tuesday announced its Budget for 2026-27 and earmarked Rs 11,412 for local bodies as part of its push towards a "developed and green Delhi", CM Rekha Gupta said in her budget speech.

Gupta in her speech said the Delhi government has earmarked Rs 11,266 crore for the Municipal Corporation of Delhi (MCD) and a total financial assistance of Rs 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 an increment of 65.47 per cent in funding allocation to local bodies from last year where the Delhi government had allocated Rs 6,897 crore to the local bodies in the 2025-26 budget.

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

Describing it as a "green budget", the chief minister said the city is passing 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 Rs 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, Rs 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. The 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.

"Rs 2,300 crore has been separately allocated to MCD for purchasing mechanical road sweeping machines and litter pickers," she added.