Slashing the Central assistance to the National Capital, a Plan outlay of only Rs 1,031 crore was made in the Union Budget, which is Rs 161 crore less than last year's Rs 1,192 crore.

Out of the total allocation, the Delhi Government has been given Rs 700 crore under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), while Rs 281.75 crore has been given as normal assistance to the city Government.

The allocation to the city government under JNNURM in 2011-12 was Rs 900 crore while normal assistance was Rs 252.70 crore.

The city government has also been given Rs 48.60 crore as allocation under the National Social Assistance Programme.

In the budget, the Finance Minister, Mr Pranab Mukherjee, has proposed an allocation of Rs 10 crore for building houses for the economically weaker sections under the Rajiv Awas Yojna.

A separate allocation of Rs 242 crore has been made for NCR Planning Board which functions under the Ministry of Urban Develeopment. NCR Board is responsible for implementing projects in the NCR comprising cities and towns of neighbouring states.

Reacting to the allocation in the Budget, a senior official in Delhi Government said allocations were on the expected lines and that the Government was not worried over cut in assistance. He pointed out that city government's tax collection in the current year has been quite satisfactory.