Delhi’s income boom: Par capita income to hit Rs 5.3 lakh, 2.5x national average

NEW DELHI: Delhi’s per capita income is projected to be Rs 5,31,610 for 2025–26, as per advance estimates, marking a 7.9% increase over the previous year, according to the economic survey 2025-26 tabled in Delhi Assembly Monday by chief minister Rekha Gupta.Delhi’s per capita income is now around 2.5 times the national average, underlining the city’s growing earning capacity and economic advantage, the survey said. Factoring out inflation, advance estimate of Delhi’s per capita income at constant prices during 2025-26 is Rs3,05,433, registering a growth of 7.1% over 2024-25.The city’s economy continues to be driven by the services sector, which contributes over 86% to the gross state value added (GSVA). High-valueservices such as finance, IT, trade, and professional services play a key role in boosting incomes, particularly in urban centres like Delhi.The rising per capita income in the capital reflects the expansion of the state’s economy, which grew at an even higher rate in the current year, according to the economic survey.“The advance estimate of GSDP of Delhi at current prices during 2025-26 is Rs 13,27,055 crore, a growth of 9.4% over 2024-25. The advance estimate of GSDP of Delhi at constant prices during 2025-26 is recorded at Rs 7,76,479 crore, showing agrowth of 8.5% over 2024 25,” the report stated.The state’s finances remain stable as Delhi continues to post a revenue surplus, though higher capital spending is set to widen the fiscal deficit. The revenue surplus stood at Rs 12,247 crore in 202425 (provisional), up from Rs 6,462 crore in 2023-24, and is budgeted at Rs 9,661 crore in 2025-26, equivalent to 0.7% of GSDP.However, the fiscal deficit is projected at Rs 13,703 crore for 2025-26, largely due to a sharp 145% jump in capital expenditure to Rs 28,115 crore from Rs 11,485 crore last year.The annual budget 2025-26 had a total outlay of Rs 1,00,000 crore, out of which Rs 59,300 crore have been allocated for schemes, programmes and projects of GNCTD — Rs 20,300 crore higher than Rs 39,000 crore allocated in 202425 (BE). At 20%, transport sector gets a lion’s share of allocations under schemes, programmes and projects for 2025-26, followed by social security & welfare (17%), water supply & sanitation (15%) education, (13%) and health (12%).Meanwhile, the consumer price index for industrial workers rose by 4.9% in 2025, indicating that while incomes are increasing, a portion of these gains may be offset by higher expenses, especially for housing, transport and essential services.According to the survey, Delhi’s revenues remain robust, driven largely by its own tax collections, which are expected to contribute Rs 68,700 crore, or 84.2% of revenue receipts in 2025-26 (BE).Grants from the Centre are estimated at Rs 12,095.8 crore (14.8%), while non-tax revenue remains marginal at Rs 750 crore (0.9%). The total revenue collection is pegged at Rs 81,545.8 crore, up from Rs 62,232.9 crore in 2024-25, or 6.1% of GSDP. Tax revenue is projected to grow by 15.5% in 202526, building on a 10.8% increase in the previous year. GST and allied taxes continue to dominate collections, followed by VAT, stamps and registration, excise and motor vehicle taxes.The government also maintains a healthy fiscal position, with a revenue surplus estimated at Rs 9,661 crore (0.7% of GSDP), though lower than the Rs 12,247 crore recorded in 2024-25. At the same time, capital expenditure is set to more than double to Rs 28,115 crore, accounting for 28.1% of the Rs 1 lakh crore budget. This sharp 145% increase in infrastructure spending is expected to push fiscal deficit to Rs 13,703 crore, though it remains within the prudent 3% of GSDP limit.According to the report, Delhi’s economy has staged a strong recovery after the severe impact of Covid, which had led to a contraction in GDSP of nearly 9% in 2020-21. The city recorded real GSDP growth of 9.6% in 2023-24 and 6.2% in 2024-25, indicating sustained momentum. Advance estimates for 2025-26 peg growth at 8.5%, reflecting a return to pre-pandemic levels.