Only 36% of Delhi government budget spent in first half of fiscal

Despite the dip in VAT, Delhi’s overall tax growth remains higher than the national average, data showed.

The Delhi government has spent just 36% of its total budgeted expenditure in the first six months of the 2025–26 fiscal year, with capital expenditure – meant for long-term infrastructure and asset creation – lagging even further at 31%, according to officials aware of the matter.

A review of departmental expenditure reports, revealed that of 36 departments, 14 had not submitted utilisation reports at all. (HT FILE)

The figures, discussed at a review meeting chaired by chief secretary Rajeev Verma last week, have triggered concern over the sluggish pace of spending and project execution.

According to officials who were part of the meeting, Verma directed all departments to fast-track project approvals and ensure the timely execution of schemes.

“The chief secretary has emphasised that every department must focus on time-bound completion of projects while removing administrative and procedural bottlenecks. He said that daily monitoring of expenditure should become the norm,” an official present at the meeting said.

Verma told officers that departmental performance this year would be judged primarily on execution speed, service delivery, and full fund utilisation. He also conveyed that the chief minister, who is closely tracking expenditure progress, had sought regular updates from departments.

A review of departmental expenditure reports, as per the meeting’s minutes seen by HT, revealed that of 36 departments, 14 had not submitted utilisation reports at all, while 22 others sent incomplete ones lacking signatures from administrative secretaries. Describing the situation as “unsatisfactory,” Verma ordered all departments to send duly signed expenditure reports immediately and to file utilisation certificates without delay.

He also directed secretaries and heads of departments to chart the timelines of every stage of spending – from project approval to tendering, award, and completion – to pinpoint bottlenecks. Departments were further instructed to improve coordination with central ministries and clear pending approvals holding up fund releases.

The chief secretary, the people cited above said, expressed displeasure over poor implementation of Centrally Sponsored Schemes (CSS), asking departments to prioritise them. “Administrative secretaries must accord the highest priority to CSS and ensure effective implementation,” the directive noted.

The Commissioner of Trade and Taxes informed the meeting that 46% of the annual revenue target had been achieved so far this fiscal. While Value Added Tax (VAT) collections had seen a decline, she said efforts were underway to offset the shortfall by the end of the year. Despite the dip in VAT, Delhi’s overall tax growth remains higher than the national average, data showed.

Verma directed departments to accelerate spending in the second half of the year and ensure that funds meant for public projects do not remain idle. “Departments have been told to monitor expenditure daily and remove bottlenecks in utilisation,” an official said. The finance department is expected to conduct another review next month, and departments that continue to lag could face stricter scrutiny or budgetary cuts in revised estimates.

Delhi chief minister Rekha Gupta presented a ₹1 lakh crore budget for 2025–26 – 31% higher than the previous year. Among the allocations were ₹1,000 crore for improving Delhi-NCR transport links, ₹5,100 crore for a yet-to-be-launched women’s welfare scheme offering ₹2,500 per month to eligible beneficiaries, ₹2,144 crore for strengthening healthcare under the Pradhan Mantri Jan Arogya Yojana, and ₹1,000 crore for education. Other heads that received funding included infrastructure development, roads, sewer systems and water supply.