Capital transfers to 3 UTs, including Delhi, have been more than doubled

3 min readNew DelhiFeb 2, 2026 06:11 AM IST

delhi budget, Budget, budget allocation, Union Budget 2026, Nirmala Sitharaman, budget allocation, Rekha Gupta, delhi news, India news, Indian express, current affairs

At a store in Delhi during the presentation of Union Budget by Finance Minister Nirmala Sitharaman on Sunday. (Amit Mehra)

The allocation for Delhi, under the 2026-27 Union Budget remained unchanged at Rs 1,348.01 crore, with the same amount being provisioned by the Union government for the Capital in the 2025-26 financial year as well.

The total transfers for Delhi, from the Union Ministry of Home Affairs, included Rs 968.01 crore under revenue expenditure and Rs 380 crore under capital heads, according to the Budget presented by Finance Minister Nirmala Sitharaman on Sunday. These figures mirror the Budget Estimates for the 2025-26 financial year.

According to the Budget document, Delhi received Rs 951 crore as Central assistance for Union Territories, which is intended to finance various schemes of the city government.

An additional Central assistance of Rs 380 crore was provided for the Chandrawal Water Treatment Plant as an externally aided project, to improve the existing water supply infrastructure, ensure equitable water distribution in the command area and a continuous supply system.

Delhi also received a grant of Rs 2 crore for enhanced compensation to the 1984 anti-Sikh riots victims, and Rs 15 crore as a grant towards contributions to the Union Territory Disaster Response Fund meant for providing relief in case of notified disasters such as earthquakes, droughts and floods.

According to the Budget Estimates of 2025-26, the transfer to Delhi was Rs 1348.01 crore. In the Revised Estimates for 2025-26, the amount was reduced to Rs 1242 crore.

Meanwhile, the Budget has more than doubled the amount of capital transfers to the Union Territories of Delhi, Jammu and Kashmir, and Puducherry, including funds under the Special Assistance to States for Capital Investment (SASCI) scheme with the total allocation increasing from Rs 6,275 crore to Rs 15,380 crore.

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While it is not yet clear how much Delhi will receive, the increase could significantly boost funds for infrastructure projects in the city. Officials said the final amount to be received by the Capital will depend on the proposals sent by the Delhi government.

Under SASCI, the Central government gives states 50-year interest-free loans for infrastructure works such as roads, flyovers, bridges and hospital buildings. In the current financial year, Delhi has received Rs 825 crore under this scheme for projects, including Delhi Metro Phase IV and improvement of roads and drains.

The scheme was launched in 2020-21 due to financial stress caused by the Covid-19 pandemic. Last year, after the BJP government came to power in Delhi after 27 years, the Centre had included Union Territories with legislatures – Delhi, Jammu and Kashmir and Puducherry – under the scheme.

Sitharaman, meanwhile, announced seven high-speed rail corridors. One of these will connect Delhi and Varanasi. Officials said this corridor will improve connectivity, reduce travel time, boost tourism, create jobs and support trade and industry.

Devansh Mittal

Devansh Mittal is a Correspondent at The Indian Express, based in the New Delhi City bureau. He reports on urban policy, civic governance, and infrastructure in the National Capital Region, with a growing focus on housing, land policy, transport, and the disruption economy and its social implications. Professional Background Education: He studied Political Science at Ashoka University. Core Beats: His reporting focuses on policy and governance in the National Capital Region, one of the largest urban agglomerations in the world. He covers housing and land policy, municipal governance, urban transport, and the interface between infrastructure, regulation, and everyday life in the city. Recent Notable Work His recent reporting includes in-depth examinations of urban policy and its on-ground consequences: An investigation into subvention-linked home loans that documented how homebuyers were drawn into under-construction projects through a “builder–bank” nexus, often leaving them financially exposed when delivery stalled. A detailed report on why Delhi’s land-pooling policy has remained stalled since 2007, tracing how fragmented land ownership, policy design flaws, and mistrust among stakeholders have kept one of the capital’s flagship urban reforms in limbo. A reported piece examining the collapse of an electric mobility startup and what it meant for women drivers dependent on the platform for livelihoods. Reporting Approach Devansh’s work combines on-ground reporting with analysis of government data, court records, and academic research. He regularly reports from neighbourhoods, government offices, and courtrooms to explain how decisions on housing, transport, and the disruption economy shape everyday life in the city. Contact X (Twitter): @devanshmittal_ Email: devansh.mittal@expressindia.com ... Read More

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