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.

­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.