NEW DELHI: Funding for the Municipal Corporation of Delhi (MCD) has improved significantly, however effective utilisation and coordination among agencies remain key to translating these allocations into cleaner streets, better schools and improved public health services, the Delhi Economic Survey 2025-26 has stated.
The survey stated that the steady rise in allocations comes at a time when Delhi is almost entirely urbanised, placing immense pressure on civic infrastructure, including waste management, school education and neighbourhood-level development.
According to the survey, overall devolutions to the local bodies were increased to Rs 6,897.01 crore in 2025–26 (Budget Estimates), up from Rs 6,231.79 crore in 2024–25, indicating a broader push to support urban services. A large share of this continues to flow to the civic authority.
Under Basic Tax Assignment (BTA), the corporation is set to receive ` 3,282.26 crore in 2025–26, compared to Rs 2,983.87 crore in the previous financial year, which is a rise after unification. NDMC is also set to receive Rs 32.37 crore, and the Delhi Cantonment Board is set to receive Rs 22.19 crore under BTA. The total allocation under BTA to local bodies stands at Rs 3,336.82 crore, according to the survey.
The survey stated that sector-wise allocations also show a similar trend. Funding for education, which is crucial for the MCD-run primary schools that lakhs of children depend on, has increased from Rs 2,064.82 crore in 2024–25 to Rs 2,293.52 crore this year.
In the health sector for local bodies, which includes municipal hospitals and dispensaries often accessed by lower-income families, allocations are likely to go up from Rs 403.96 crore to Rs 464.16 crore. Urban development grants for the local bodies, used for roads, drains and sanitation infrastructure, have also increased from Rs 729.55 crore last year to Rs 802.51 crore in 2025–26.
Rise in allocations when Delhi is almost urbanised
The survey stated that the steady rise in allocations comes at a time when Delhi is almost entirely urbanised, placing immense pressure on civic infrastructure, including waste management, school education and neighbourhood-level development.