Delhi: Revenue receipts up 43.57% between FY24 and FY26, says report

Delhi government projects a 43.57% rise in revenue receipts by 2025-26, boosting infrastructure and public spending, with taxes contributing 95% of earnings.

The Delhi government’s revenue receipts are projected to register a sharp rise of 43.57% between the Budget Estimates (BE) of 2023-24 and 2025-26, signalling stronger fiscal inflows and expanded public spending, according to a report released on Wednesday by the Directorate of Economics and Statistics.

Capital formation is also projected to expand substantially, increasing to ₹15,412 crore in 2025-26 from ₹6,770 crore in the previous year. (Shutterstock)

Titled Analysis of the Budgetary Transactions of State Government 2025-26, the report states that revenue receipts are estimated to increase from ₹56,797.79 crore in 2023-24 (BE) to ₹81,545.83 crore in 2025-26 (BE) . This marks a 43.57% rise over the two-year period. The report also noted that revenue receipts are expected to rise by 29.4% between the revised estimates (RE) of 2024-25 and budget estimates of 2025-26.

Infrastructure spending is set to see a significant boost, particularly through construction activity. The gross expenditure/outlay on new construction stood at ₹6,227.74 crore in 2023-24, ₹4,130.38 crore in 2024-25 , and is projected to rise sharply to ₹13,882.09 crore in 2025-26 – more than doubling within two years. The report clarifies that new construction includes alteration, addition and construction of residential and office buildings, roads, bridges and other works.

Capital formation is also projected to expand substantially, increasing to ₹15,412 crore in 2025-26 from ₹6,770 crore in the previous year.

Taxes and interest continue to account for the bulk of the government’s earnings. The report states that taxes and interest together contributed around 95% of revenue receipts in both 2023-24 and 2025-26.

The analysis highlights a marked expansion in overall government expenditure. Total disbursement stood at ₹65,823.87 crore in 2023-24, while total outlays are estimated at ₹76,000 crore for 2024-25 (BE)– it was ₹69,500 crore in RE – and ₹1 lakh crore for 2025-26 (BE).

Subsidies, salaries and infrastructure remain the principal expenditure heads. About 95% of expenditure comprises current transfers, including subsidies (35.8%), compensation of employees (23.99%), new construction (9.46%), purchase of goods and services, and interest payments. These components have consistently dominated spending over the past three financial years.

Spending on employee compensation has steadily increased, rising from ₹15,791.11 crore in 2023-24 to ₹17,229.62 crore in 2024-25 and ₹19,954.98 crore in 2025-26. A substantial share of this expenditure is directed toward education and health services.

Subsidies and welfare transfers also form a significant portion of spending. Expenditure on current transfers, including subsidies, stood at ₹23,563.22 crore in 2023-24, ₹25,896.13 crore in 2024-25, and ₹34,519.86 crore in 2025-26. These include grants, scholarships, transport and power subsidies, and welfare support.

Overall, the analysis points to rising revenues alongside expanding expenditure, with education, health, transport, welfare and infrastructure remaining central to the Delhi government’s fiscal priorities for 2025-26.