India, March 25 -- Delhi's fiscal priorities have made a huge pivot from the politically rewarding populism of Aam Aadmi Party's 10-year rule to capital expenditure under the current Rekha Gupta-led Bharatiya Janata Party (BJP) government.

This is best seen in a 10-percentage point increase in the share of capital spending in the city state's (technically a Union territory's) budget under the current government. If implemented well, not just in terms of money being spent, but money spent wisely, effectively and sustainably, this could be a much-needed policy turnaround for the declining fortunes and living standards of the national capital. While some of the pivot towards capex is a political call, some of it could well be a result of be...