Delhi govt proposes to finance its mega budget through revenue, market borrowing

Delhi govt proposes to finance its mega budget through revenue, market borrowing

New Delhi, The Delhi government will finance its highest-ever budget, tabled by Chief Minister Rekha Gupta on Tuesday, through its own revenue pegged at ₹74,000 crore and ₹16,700 crore market borrowing through the RBI.

Delhi govt proposes to finance its mega budget through revenue, market borrowing

The Budget Estimates in 2026-27 of ₹1,03,700 crore is ₹3,700 crore higher than the ₹1,00,000 crore BE in 2025-26, an increase of 3.7 per cent.

It will be the first time that the Delhi government will source budget funds through market borrowing.

In January this year, the Delhi government signed an MoU with the Reserve Bank of India , under which the central bank serves as the banker, debt manager and financial agent of the government.

The agreement enables market borrowing through state development loans, automatic investment of surplus cash, professional cash management and access to low-cost liquidity facilities within the framework prescribed by the Centre and the RBI Act.

Gupta had said that funds raised through market borrowings would be utilised exclusively for capital expenditure, with focus on priority sectors, including Yamuna rejuvenation, drinking water supply, health infrastructure, public transport, roads and flyovers.

The capital expenditure in the budget 2026-27 has been raised to ₹30,799.72 crore from about ₹28,000 crore in the budget estimates for 2025-26. However, according to the revised estimates of 2025-26, the capital expenditure was ₹32,600 crore.

Presenting her second budget, Gupta also announced that the central government has allowed separating the public account of the Delhi government from the Centre's account.

The Goods and Services Tax will form the highest portion of the Delhi government's revenue receipts in 2026-27. According to the budget documents, the total revenue receipt of ₹74,000 crore will comprise ₹43,500 crore in GST.

Other major revenue sources will be stamp and registration fees of ₹11,000 crore, value-added tax , State Excise , and centrally sponsored schemes , among others.

The chief minister said the Economic Survey tabled in the Assembly on Monday proved that Delhi's growth rate has always been higher than the national average.

"However, lack of investment in basic infrastructure and priority to freebies culture during 2021-22, 2023-24, 2024-25, the growth rate was impacted," she said, referring to the previous A government in Delhi.

Citing benefits to the Delhi economy from the Centre's policies and faster execution of projects, Gupta said the Gross State Domestic Product of Delhi grew to ₹12.13 lakh crore in 2024-25, which, according to advanced estimates of 2025-26, is expected to rise to ₹13.27 lakh crore with a growth of 9.4 per cent.

Delhi's contribution to the national Gross Domestic Product increased from 3.67 per cent in 2024-25. The advanced estimates of 2026-27 put it at 3.72 per cent, she pointed out.

Also, the per capita income of Delhi is the third highest in the country. It is likely to be ₹5.3 lakh according to the advanced estimates of 2025-26, she added.

This article was generated from an automated news agency feed without modifications to text.