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New flyovers, redevelopment of roads, EV Policy 2.0, expansion of parks, forests: Delhi CM announces ‘Green Budget’

To reduce traffic congestion, the Budget proposes the construction of at least nine new flyovers and corridors.

Delhi Green Budget 2026, rekha gupta,Chief Minister Rekha Gupta (Photo: Rekha Gupta/X)

Chief Minister Rekha Gupta on Tuesday termed Delhi’s 2026-27 Budget a “Green Budget”. Amid the Capital’s persistent pollution crisis, this reflected a broad reframing of expenditure, with a substantial share of spending across sectors being classified as contributing to environmental improvement.

This reframing also signalled an acknowledgment that the Capital’s pollution crisis required a 360-degree response, rather than just emergency measures during peak winter – specifically focusing on factors such as traffic congestion, road dust, vehicular emissions, and other sources of pollution.

“…21.44% of the total Budget, amounting to Rs 22,236 crore, has been allocated to the Green Budget. Whether e-waste, road transport, infrastructure, or Metro projects, every effort has been made to integrate environmental considerations,” Environment Minister Manjinder Singh Sirsa said.

To reduce traffic congestion, the Budget proposes the construction of at least nine new flyovers and corridors that will ease congestion on key stretches such as Modi Mill flyover to Savitri Cinema and Azadpur to Tripolia.

“We are addressing traffic congestion because it helps curb vehicular emissions. Similarly, the setting up of new decentralised STPs (sewage treatment plants), tapping all drains, and ensuring that only treated water is released into the Yamuna river will help control water pollution. Overall, the focus is on making Delhi greener and better,” PWD Minister Parvesh Sahib Singh said.

With damaged or unpaved roads generating a significant amount of road dust, contributing heavily to PM10 and PM2.5 levels, Gupta on Tuesday announced a separate allocation of Rs 1,392 crore for end-to-end carpeting and redevelopment of 750 km of PWD roads. Additionally, around Rs 1,000 crore has been proposed under various schemes for MCD roads, along with Rs 160 crore for improving roads and drainage systems in industrial areas.

Gupta also announced one of the government’s most anticipated initiatives – EV Policy 2.0. The policy aims to transition the city’s entire bus fleet to electric vehicles by 2029. Delhi currently operates about 6,100 e-buses.

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Calling it the most ambitious effort of its kind in the country, the CM said the policy would significantly expand the Capital’s push toward cleaner transport. Transport Minister Pankaj Kumar Singh said the policy will soon be put in the public domain for suggestions and will be implemented within a month-and-a-half.

The government also announced that it will collaborate with the World Bank on advanced environmental solutions. Other key priority areas include the expansion of urban forests, parks, and green spaces; increasing waste processing capacity from 7,000 to 15,000 metric tonnes per day; and the expansion of waste-to-energy plants at Narela, Okhla, Ghazipur, and Tehkhand.

Further, the government increased the allocation for the Environment department from Rs 505 crore to Rs 808 crore this year. It also allocated Rs 300 crore for pollution control and emergency response plans, which included mechanical sweepers, anti-smog guns and water sprinklers. Additionally, MCD will receive Rs 204 crore for pollution control.

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