Subsidy spend surges, IT funds face cuts in budget

The updated Revised Estimates (RE) indicate that the outlay for power subsidy has been increased to nearly Rs 4,200 crore, up from the Budget Estimate (BE) of Rs 3,849 crore.
The hike reflects the need to settle pending dues and accommodate rising demand under the scheme, driven by an increase in the number of beneficiaries.
The hike reflects the need to settle pending dues and accommodate rising demand under the scheme, driven by an increase in the number of beneficiaries.
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NEW DELHI: The Delhi government’s spending on subsidies for free bus travel for women and electricity has risen significantly, even as allocations for several key IT initiatives have been sharply reduced, according to the revised estimates for the ongoing financial year released by the Finance Department.

The updated Revised Estimates (RE) indicate that the outlay for power subsidy has been increased to nearly Rs 4,200 crore, up from the Budget Estimate (BE) of Rs 3,849 crore.

The hike reflects the need to settle pending dues and accommodate rising demand under the scheme, driven by an increase in the number of beneficiaries.

Under the existing policy, households in Delhi receive free electricity for consumption up to 200 units per month, while those consuming between 201 and 400 units are eligible for a 50 per cent subsidy. The growing consumer base has added to the financial burden, prompting the upward revision.

Similarly, subsidies aimed at supporting free bus travel for women have also seen a notable increase. The RE for the Transport Department shows that the allocation to the DTC has been revised to Rs 328 crore, compared to the BE of Rs 240 crore. In addition, the subsidy for cluster bus services has been raised to Rs 342 crore from the initial Rs 200 crore for 2026-27.

Overall, the total subsidy outlay for female commuters has climbed to Rs 670 crore, up from the budgeted Rs 440 crore, reflecting higher usage of the scheme. In contrast, expenditure on Information Technology projects has seen a steep decline. While the IT Department was initially allocated Rs 690.5 crore for 2025-26, the revised estimates peg actual spending at just Rs 215 crore, marking a shortfall of nearly 69 per cent.

Officials attributed the decline to reduced spending across multiple initiatives, including the Unified Data Hub project, where allocation was cut drastically from Rs 250 crore to just Rs 6 crore as the financial year nears closure.

Similarly, funding for various e-governance programmes has been scaled down from Rs 150 crore to Rs 15 crore, indicating slower implementation progress.

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