India vs Delhi — Budget Comparison 2026-27

India's federal fiscal structure divides spending responsibilities between the Centre and states. The Union Budget covers national priorities like defence, foreign affairs, and central schemes, while state budgets handle education, health, police, and local infrastructure.

The Finance Commission determines how central tax revenue is shared with states. Currently, 41% of the divisible pool is transferred to states. Additionally, states receive grants-in-aid for specific schemes and programs.

Delhi's share of central transfers, combined with its own tax revenue (state GST, excise, stamp duty, vehicle tax) and non-tax revenue, determines its total resource envelope. Comparing this with the Union Budget provides a complete picture of public finance in India.