Delhi: ₹11,266 crore for MCD in govt’s ‘triple-engine’ boost

Delhi's CM Rekha Gupta announced a ₹11,266 crore budget for MCD, focusing on waste management and development, amid AAP's criticism over transparency.

Delhi chief minister Rekha Gupta, while presenting the Budget 2026–27 on Tuesday, announced an allocation of ₹11,266 crore for the Municipal Corporation of Delhi (MCD), marking an increase of ₹729 crore over the previous fiscal. The budget also proposes ₹146 crore in financial assistance for the New Delhi Municipal Council (NDMC) and the Delhi Cantonment Board (DCB).

Gupta said the enhanced allocation is part of the government’s push towards a “Developed Delhi – Green Delhi”. (HT)

Gupta said the enhanced allocation is part of the government’s push towards a “Developed Delhi – Green Delhi”. “For the realisation of a ‘Developed Delhi – Green Delhi’, we have allocated a provision of ₹11,266 crore for the MCD this year—an amount significantly higher than that of the previous year. Additionally, the budget proposes financial assistance totalling ₹146 crore for the NDMC and the DCB. The resolve for a ‘Developed Delhi – Green Delhi’ will thus gain the threefold momentum of a ‘Triple Engine’,” Gupta said.

A key focus was waste management, with the chief minister outlining a plan to double garbage processing capacity from 7,000 tonnes per day (TPD) to 15,000 TPD. Speaking about the capital’s landfill crisis, Gupta said, “The mountains of waste in Delhi are not a problem that emerged overnight. They are the result of years of insufficient waste disposal. We are actively working towards increasing our waste processing capacity from 7,000 metric tonnes to 15,000 metric tonnes per day. To this end, provisions have been made for the expansion of waste-to-energy plants in Narela, Okhla, Ghazipur, and Tehkhand.”

The government also announced a separate action plan for managing 1,500 tonnes of cow dung waste generated daily, which Gupta said would help reduce emissions and fuel imports. “This will lead to a reduction in emissions and a decline in fuel imports, enabling Delhi to emerge as a model of a circular economy,” she added.

HT graphic

Among other civic measures, the budget includes ₹1,000 crore for colony roads, ₹204 crore for pollution control measures, and a ₹300 crore scheme for the procurement of mechanical sweepers, anti-smog guns and water sprinklers. The government also plans to work with the MCD to develop five new modern parking facilities.

The announcement comes amid a long-standing tussle over fund allocation between the Delhi government and municipal bodies. Allocations to the erstwhile three municipal corporations had declined for three consecutive years — ₹6,828 crore in 2020–21, ₹6,172 crore in 2021–22, and ₹6,154 crore in 2022–23 — before rising in the past two years. The previous budget had allocated ₹10,537 crore.

Gupta, who rose to the chief minister’s post from being a municipal councillor, said tackling legacy waste remains a priority. “We no longer view waste as a problem, but rather as an opportunity. We have achieved significant success in reducing legacy waste: a 16% reduction in Ghazipur, a 54% reduction in Bhalswa and a 68% reduction have been achieved in Okhla. This is the true picture of transformation,” she said. The government has set targets to clear the Okhla landfill by June and Bhalswa by December 2026.

The hike in allocation comes as the Bharatiya Janata Party (BJP) has taken control of the MCD, which continues to face an acute financial crunch. The MCD commissioner, during the municipal budget, had flagged liabilities of ₹15,592 crore, including pending payments to contractors, employee salaries, retirement benefits and loan repayments.

Aam Aadmi Party (AAP) on Tuesday questioned the BJP-led Rekha Gupta government over its more than ₹1 lakh crore budget, stating a lack of transparency in both the current outlay and last year’s expenditure. AAP Delhi unit chief Saurabh Bharadwaj said the government had once again presented a hollow and imaginary budget, adding that despite announcing a similar ₹1 lakh crore outlay last year, it has yet to account for how the funds were spent.

The AAP Delhi state president stated that the government has removed thousands of people from jobs, stopped pensions, and cancelled ration cards. He said, “There has been no additional financial burden on the government, so where did this ₹1 lakh crore go?” He added that under the AAP government, work estimated at ₹1 crore was completed for ₹55 lakh, whereas today the same work is being done for ₹95 lakh, with ₹40–45 lakh being distributed among officials and ministers.