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Informist, Wednesday, Mar. 26, 2025

 

By Priyasmita Dutta

 

NEW DELHI – Delhi's fiscal deficit is set to see a nearly ninefold on-year increase in 2025-26 (Apr-Mar) as the new government rushed to join other states in giving out cash handout schemes for women along with other welfare plans. Chief Minister Rekha Gupta tabled her maiden budget on Tuesday and projected the fiscal deficit at INR 137.03 billion in FY26, as against the revised estimate of INR 15.24 billion for this year. 

 

Last week, the Haryana government had announced the 'Lado Laxmi Yojana', adding to the growing list of such schemes that include Maharashtra's 'Majhi Ladki Bahin Yojana', Jharkhand's 'Maiya Samman Yojana', and one of the earliest - West Bengal's 'Lakhmir Bhandar' scheme. 

 

Gupta, who also holds the portfolio of finance, announced that the government will be spending INR 51 billion for the 'Mahila Samridhi Yojana', in which INR 2,500 will be provided to poor women of the state per month. This is part of the total INR 100.47 billion allocated for social welfare, women and child development and backward castes' welfare in FY26.

 

Gupta announced another INR 32.27 billion allocated for cash transfer schemes for senior citizens and differently-abled people. She also announced a new scheme – Mukhyamantri Matru Vandana Yojana – costing INR 2.1 billion in FY26, under which financial assistance of up to INR 21,000 and six nutrition kits will be provided to 100,000 beneficiaries. This scheme will follow the Pradhan Mantri Matru Vandana Yojana, a maternity benefit program aiming to improve maternal and child health, particularly among disadvantaged women.

 

These schemes are part of the Bharatiya Janata Party's poll promises made earlier this year. The party managed to form a government in the state after 26 years on the back of a historic victory in the recently held Assembly elections. "With this budget, Delhi will now become the capital of progress, not just politics. Now instead of announcements, plans will be implemented," Gupta said in her speech. "Delhi will now become the capital of intentions, not promises."

 

While welfare spending was at the heart of Gupta's maiden budget speech, she announced the government's focus on 10 broad areas, including industrial development and investment promotion, sanitation and healthcare, connectivity and flood control. 

 

Delhi's total expenditure for FY26 is projected at INR 1 trillion, up 44% on year. Of this, revenue expenditure for FY26 is pegged at INR 718.85 billion, up 31% on year. This includes the expenditure on salaries, pensions, interest, grants, and subsidies. The capital expenditure for FY26, on the other hand, is projected to nearly double to INR 281.15 billion, from INR 147.94 billion this year. 

 

Total revenue in FY26 is projected at INR 970.35 billion, 45% higher than the revised estimate of INR 670.42 billion for this year. The state government expects to earn INR 687 billion from its own tax revenue in the next fiscal. Of this, the government sees INR 410 billion from Goods and Services Tax, INR 90 billion from stamp and registration duty, INR 80 billion from sales tax and INR 70 billion from state excise duty.

 

Delhi also expects to receive INR 120.96 billion as a share of taxes from the Centre, and another INR 73.48 billion as grants-in-aid. The state also aims to raise INR 150 billion through borrowings from small savings in FY26.

 

Gupta also announced 'Vivaad se Vishwaas' scheme for middle class traders, under which, old Value-Added Tax cases will be resolved amicably, so that traders get relief from pending lawsuits. "This scheme will not only increase the confidence of traders, but also increase the revenue of the state government," she said.  End

 

Edited by Tanima Banerjee

 

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