Delhi’s government has lifted its health budget by 69% for 2025-26 to ₹12,826 crore, but a legislative panel says the department had used only 46.46% of the money by Dec. 24, raising doubts about whether the capital can turn a record allocation into actual care.
Delhi Health Budget Rises 69% to ₹12,826 Crore
The mismatch matters because health spending is one of the clearest tests of public-sector execution. Delhi’s health outlay now equals 13% of the total budget, yet the department itself says spending is still just 0.79% of gross state domestic product, far below the 2.5% benchmark under the National Health Policy, 2017.
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The Public Accounts Committee called the increase “unprecedented” but said the department has not given year-wise targets, a clear mechanism or a timeline to ensure funds are deployed on time. Without those guardrails, the panel warned, Delhi risks repeating the familiar year-end rush to spend money and leaving large sums unutilised.
That is a material issue for hospitals, drug procurement and infrastructure projects that depend on predictable cash flow. The report said the government has moved on several fronts, including revamping procurement and expanding facilities, but said implementation remains incomplete and too often backed by assurances rather than hospital-wise data or measurable outcomes.
Delhi also lags on Sustainable Development Goal 3 health targets, and the committee wants a year-by-year action plan through 2030. For investors and contractors tied to public health projects, the key risk is not just the bigger budget, but the state’s ability to convert that spending into tenders, contracts and completed assets on schedule.
The next test is whether the health department can publish a credible utilisation roadmap before the financial year closes, or whether the budget bump becomes another headline without follow-through.
| Entity | Gains | Losses |
|---|---|---|
| Delhi government | ▲Bigger health budget | ▼Credibility on execution |
| Patients and hospitals | ▲Potentially more funding | ▼Delayed services and projects |
| Contractors and suppliers | ▲Future procurement opportunities | ▼Slower tender rollout |
| Public Accounts Committee | ▲Oversight leverage | ▼Little control over spending pace |
