Delhi budget 2026-27: Infra push with ₹7.9k cr for urban development

The budget proposes an allocation of ₹5,921 crore for the Public Works Department (PWD) and ₹7,887 crore for the Urban Development and Housing Department.

The Delhi government has earmarked substantial funds for infrastructure development in the 2026-27 budget, with a focus on road strengthening, congestion relief, drainage upgrades, and public safety measures across the Capital, though no new projects were announced.

Delhi Chief Minister Rekha Gupta. (RAJ K RAJ /HT PHOTO)

The budget proposes an allocation of ₹5,921 crore for the Public Works Department (PWD) and ₹7,887 crore for the Urban Development and Housing Department.

A key highlight in the budget presented by chief minister Rekha Gupta on Tuesday was an allocation of ₹1,392 crore for strengthening and redevelopment of around 750 kilometres of PWD roads. Officials said the funds will be used for large-scale “wall-to-wall” redevelopment of PWD’s expansive road network.

“There are around 1,400 kilometres of roads in Delhi under PWD. Of this, we have already started work on around 500 kilometres in 2025-26 and will start work on another 750 kilometres in the coming financial year,” CM Gupta said.

Additionally, ₹575 crore has been proposed for construction and repair of eight road stretches to be executed through the Delhi Metro Rail Corporation (DMRC) and PWD, targeting traffic bottlenecks and improving connectivity across major corridors.

“Flawless connectivity, climate-resilient corridors and technologically secure roads are our target,” Gupta said.

The budget also outlined targeted interventions in north Delhi, with ₹10 crore allocated for extension of an underpass near Mukarba Chowk up to Sanjay Gandhi Transport Nagar, and another ₹10 crore for construction of an elevated road from Bhalswa to National Highway (NH)-1.

Among the larger flyover projects announced earlier, ₹210 crore has been allocated for Barapullah, ₹150 crore for doubling of Savitri Cinema flyover and construction of the Modi Mill to Kalkaji flyover, and ₹454 crore for constructing two lanes on both sides of the Najafgarh flyover.

An allocation of ₹99 crore has been made for an underpass on Mangal Pandey Marg.

The government has allocated ₹300 crore for the Trans Yamuna Area Development Board, revived after over a decade, and ₹800 crore for development of unauthorised colonies. Additionally, ₹100 crore has been proposed for establishment of Atal Canteens in JJ clusters to provide nutritious meals, and ₹787 crore for integrated development of rural and urban villages.

Officials aware of the matter said that in the majority of these instances, the allocation announced on Tuesday in the budget was additional funding, exceeding what has already been spent on the projects.

Meanwhile, a comprehensive Drainage Master Plan for the city has been prepared, with ₹200 crore allocated for implementation in 2026-27.

The government has also proposed ₹50 crore for replacing approximately one lakh conventional streetlights on PWD roads with energy-efficient smart LED systems, aimed at improving visibility, reducing power consumption, and enabling intelligent monitoring.

For the first time, the government will construct roads in non-conforming industrial areas with a budget outlay of ₹160 crore, along with ₹25 crore for foot overbridges. An allocation of ₹10 crore has also been made for setting up a state-of-the-art emergency operation centre to deal with disaster-like situations in Delhi.

The transition is aimed at improving visibility, reducing power consumption and enabling intelligent monitoring of street lighting infrastructure. Officials said that the projects will be implemented in phases, with priority given to high-traffic corridors and vulnerable zones.