New Delhi, Feb 1 (PTI) The Delhi government was allocated Rs 100 crore more in the Union Budget 2025-26 presented in the Parliament on Saturday compared to FY 2024-25, even as the Aam Aadmi Party termed it a "major disappointment".

Delhi received Rs 1,348 crore as compared to Rs 1,248.01 crore in the current fiscal. The transfers include grants in aid of Rs 968.01 crore under the revenue head and Rs 380 crore as loans and advances under the capital head.

In the 2024-25 budget, Delhi received Rs 280 crore as loans and advances.

The Aam Aadmi Party, which is looking to retain power in Delhi in the February 5 Assembly polls, termed the Budget of the BJP-led Central government a "major disappointment".

In a statement, it stated that the middle class, in particular, has been "deceived" as there is no relief on GST or home loans.

The AAP government has been at the loggerheads with the Centre over budgetary allocations for it for years, demanding more share from the central pool of taxes, citing high income tax paid by people in Delhi.

Reacting to the budget, AAP national convenor Arvind Kejriwal wrote on X that a large portion of the nation's treasury is spent on waiving off the loans of a handful of billionaire industrialists.

"I had demanded that the budget announce that no billionaire's loans will be waived in the future. The money saved from this should be used to provide relief on home and vehicle loans of the middle class and waive farmers' debts. Income tax and GST rates should be halved. I am saddened that this was not done," he said.

Senior AAP leader Jasmine Shah wrote on X that Budget 2025-26 is "disappointing" for everyone, especially the middle class. He pointed out that about 30 per cent of India's population is middle class, but only 2 per cent -- "around 3 crore people" -- pay income tax.

The rest, including the poor, contribute through indirect taxes such as GST and excise duty on petrol and diesel. Yet, this budget provides no relief for 98 per cent of Indians, Shah said.

He also claimed that the Budget 2025-26 is a major setback to India's dream of becoming a developed nation because it significantly reduces the government's role in education and healthcare.

Kejriwal had urged the central government to increase the education budget to 10 per cent of GDP, but instead, the Modi government cut it, Shah said. "In 2013-14, the education budget was 4.6 per cent of GDP but now it has been slashed to just 2.5 per cent." However, BJP leaders in the city termed the income tax relief announced in the Budget a big boost for the middle class, asserting it will strengthen the party's support among the middle class in the national capital.

Delhi BJP president Virendra Sachdeva said this is an important announcement that will deepen the confidence of the middle class in the BJP.

"We have already made several announcements for the middle class in our budget, and we will continue to do more for them in the future. The income tax relief for those with an annual income of Rs 12 lakh will have a significant impact on the upcoming Delhi Assembly polls.

"There is a large number of taxpayers in Delhi who will benefit, and this is a budgetary gift to the middle class," Sachdeva said.

Another BJP leader Vijender Gupta, who is contesting from the Rohini seat, said a large number of middle-class people in Delhi will directly benefit from the move, boosting their purchasing power and driving market growth.

"It shows the BJP cares for the needs of the middle class and is going to be supported in a big way in the elections," Gupta told PTI. PTI VIT NSD NSD

Budget allocation shift: revenue grants versus loans scrutinised amid debates over tax relief and public spending priorities. The central Budget modestly increases Delhi's transfer year on year, structured as revenue grants in aid and capital loans and advances, while political actors contest the sufficiency and distributive consequences of those allocations-criticising the absence of direct tax and home loan relief and alleging reduced public investment in education and healthcare.