Health of Delhi’s economy: fiscal deficit widens by 62% in 2025-26 as revenue falls
The Hindu
Delhi's fiscal deficit surged by 62% in 2025-26, reflecting revenue declines and raising concerns about the city's economic health.
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Delhi’s fiscal deficit for 2025–26 has increased by 62.65% to ₹22,289.03 crore in the revised estimate (RE), compared to the budget estimate (BE) of ₹13,702.95 crore presented last year, showing slight strains in the State’s financial health.
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This could be one reason why the year-on-year increase in the total outlay of the budget rose by only 3.7% this year (2026–27) to ₹1.03 lakh crore.
Last year, the first budget presented by the BJP government (2025–26) had seen an increase in the total outlay by 43.88% to ₹1 lakh crore compared to the ₹69,500 crore budget presented by the AAP government in 2024–25.
However, the fiscal deficit is expected to come down in 2026–27 to ₹16,966.29 crore as per the BE for the current budget, which was presented on Tuesday by Chief Minister Rekha Gupta. This could change in the RE, which will be known about a year later in the next year’s budget (2027–28).
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