MCD Funding Boost: Utilisation & Coordination Key

New Delhi, Mar 23 (PTI) Funding for the Municipal Corporation of Delhi (MCD) has improved, but effective utilisation 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 tabled in the Assembly by Chief Minister Rekha Gupta on Monday, also stated that the steady rise in allocations comes at a time when Delhi is almost entirely urbanised, placing immense pressure on civic infrastructure, including waste management, school education and neighbourhood-level development.

While funding has improved, effective utilisation 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 devolutions to local bodies were 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 a rise after unification.

NDMC is also set to receive Rs 32.37 crore and Delhi Cantonment Board is set to receive Rs 22.19 crore under BTA. 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.