Delhi Government Receives Rs 100 Crore More in Union Budget 2025-26, AAP Labels It a Disappointment

The Union Budget for 2025-26 has allocated an additional Rs 100 crore to the Delhi government compared to the previous fiscal year. Despite this increase, the Aam Aadmi Party (AAP) expressed dissatisfaction, labelling it a significant letdown. Delhi's allocation now stands at Rs 1,348 crore, up from Rs 1,248.01 crore in 2024-25. This includes Rs 968.01 crore in grants and Rs 380 crore as loans.

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The AAP, aiming to retain power in the upcoming February 5 Assembly elections, criticised the BJP-led Central government's budget. They claimed it failed to provide relief on GST or home loans, particularly affecting the middle class. The party has long demanded a larger share of central taxes, citing high income tax contributions from Delhi residents.

Middle Class Concerns

Arvind Kejriwal, AAP's national convenor, voiced his concerns on X. He criticised the budget for prioritising loan waivers for billionaire industrialists over middle-class relief. Kejriwal suggested that savings from not waiving billionaire loans should aid middle-class home and vehicle loans and reduce farmers' debts. He also advocated for halving income tax and GST rates.

Senior AAP leader Jasmine Shah echoed these sentiments, stating that the budget offers no relief for 98% of Indians. He highlighted that while only 2% of India's population pays income tax, everyone contributes through indirect taxes like GST and excise duty. Shah argued that the budget undermines India's aspirations of becoming a developed nation by reducing government investment in education and healthcare.

Education Budget Concerns

Shah noted that Kejriwal had urged an increase in the education budget to 10% of GDP. However, he claimed that the Modi government cut it from 4.6% in 2013-14 to just 2.5% now. This reduction is seen as a setback for India's development goals.

In contrast, BJP leaders in Delhi praised the budget's income tax relief as beneficial for the middle class. Delhi BJP president Virendra Sachdeva described it as a significant boost that would enhance the party's support among middle-class voters in the capital.

BJP's Perspective

Sachdeva emphasised that income tax relief for those earning up to Rs 12 lakh annually would significantly impact the upcoming Delhi Assembly elections. He viewed it as a gift to middle-class taxpayers in Delhi. BJP leader Vijender Gupta, contesting from Rohini, stated that this move would directly benefit many middle-class individuals by increasing their purchasing power and stimulating market growth.

Gupta asserted that this demonstrates the BJP's commitment to addressing middle-class needs and predicted strong electoral support for the party as a result. The contrasting views between AAP and BJP highlight differing perspectives on how the budget impacts Delhi's residents and its potential influence on upcoming elections.