Delhi’s subsidy spending rises as power, bus schemes overshoot budget; IT projects face sharp cuts

Delhi's subsidy burden for welfare schemes has surged, with free electricity and bus travel for women seeing significant increases.

Delhi government’s subsidy burden for key welfare schemes, including free electricity and free bus travel for women, has risen sharply in the current financial year, even as spending on major Information Technology (IT) initiatives saw significant cuts, according to revised estimates (RE) released by the finance department.

The increase in transport subsidy indicates continued high uptake of the scheme, officials said (Hindustan Times)

The revised figures show that the outlay for power subsidy has increased to around ₹4,037.62 crore, up from the Budget Estimate (BE) of ₹3,600 crore. The upward revision reflects additional financial requirements to clear pending dues and accommodate higher demand under the electricity subsidy scheme, driven by a rise in the number of beneficiaries, officials said.

Under the scheme, domestic consumers in Delhi receive free electricity for consumption up to 200 units per month, while those consuming between 201 and 400 units receive a 50 per cent subsidy. Officials said growing consumer enrolment and sustained usage levels contributed to the higher subsidy outgo.

Similarly, expenditure on the free bus travel scheme for women has also exceeded initial projections. Revised estimates for the Transport Department show that subsidy support to the Delhi Transport Corporation (DTC) for female commuters has increased to ₹328 crore, compared to the BE of ₹240 crore.

In addition, the subsidy for Cluster bus services catering to women passengers has been revised upward to ₹342 crore from the budgeted ₹200 crore. Taken together, the total subsidy for free travel for women has risen to ₹670 crore, significantly higher than the initial allocation of ₹440 crore.

The increase in transport subsidy indicates continued high uptake of the scheme, which allows women to travel free of cost on public buses in the Capital.

In contrast to the rise in welfare spending, allocations for IT and digital infrastructure projects have seen sharp reductions in the revised estimates, pointing to slower-than-expected implementation during the financial year.

The Delhi government IT department, which was allocated ₹690.5 crore in the budget for 2025–26, is now estimated to have spent only ₹215 crore — a steep decline of nearly 69 per cent. The cuts have affected several key projects, including the ambitious Unified Data Hub initiative.

The project, which was initially allocated ₹250 crore, has seen its revised allocation drastically reduced to just ₹6 crore as the financial year draws to a close. Similarly, funding for various e-governance initiatives has been slashed from ₹150 crore to ₹15 crore, indicating delays or deferment in planned digital interventions.

Officials attributed the reductions to slower execution timelines and pending clearances in certain projects, which limited the ability to utilise the allocated funds within the current fiscal.