The Modi government has significantly increased financial support for Delhi, with central grants rising by over 161% in the city’s budget for the 2025-26 fiscal year. This move aligns with Prime Minister Narendra Modi’s vision of a “Double Engine Sarkar,” where both the central and state governments work together to accelerate development.
Delhi Chief Minister Rekha Gupta, presenting the first BJP-led budget for Delhi in 27 years announced that funds allocated for the city under different categories have increased from ₹4,391 crore in the previous fiscal year to ₹11,469 crore for 2025-26. The total budget for the national capital has been set at ₹1 lakh crore significantly higher than the ₹76,000 crore budget of the previous Aam Aadmi Party (AAP) government.
The tax revenue for Delhi is projected at ₹68,700 crore, with non-tax revenue at ₹750 crore and small debt at ₹15,000 crore. The Centre’s contribution includes ₹4,128 crore under “Normal Central Assistance & Other Central Grants” and ₹7,341 crore under “Centrally Sponsored Schemes,” marking a substantial increase in financial aid.
The BJP government’s strategy focuses on rapidly transforming Delhi’s infrastructure and services. Prime Minister Modi has reportedly instructed ministers and senior bureaucrats to ensure “visible and tangible change” in the capital within three years. Ministries such as Road Transport and Highways, Housing and Urban Affairs, Health and Family Welfare, and Inland Waterways have been directed to work closely with the state government to implement joint development schemes.
During its campaign for the Delhi Assembly elections, the BJP had promised to turn the city into a “world-class capital” through enhanced collaboration between the Centre and the state. The significant boost in central grants is seen as a step towards fulfilling this commitment, ensuring that Delhi sees accelerated improvements in infrastructure, urban planning, and public services.
