Chief Minister Arvind Kejriwal has called a Cabinet meeting regarding it tomorrow.
The move came after a delegation of the Swachhta Karamchari Union met Kejriwal and briefed him about financial problems being faced by sanitation workers.
An official said the money was meant for payment of salaries and pensions to employees of municipal corporations.
The chief minister told the delegation the city administration was paying the MCDs much more than what was being paid earlier.
He said he was surprised to know sanitation workers were facing problems.
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The delegation was told that the East Delhi Municipal Corporation got Rs 948 crore in 2016-17 as compared to Rs 287.72 crore in 2013-14.
The North Delhi Municipal Corporation got Rs 1318.26 crore in 2016-17 as against Rs 808.77 crore in 2013-14.
"The chief minister assured the delegation that an additional Rs 474 crore will be released by the government for the MCDs very soon.
"The chief minister has called for a cabinet meeting tomorrow to approve the additional fund to be released to the corporations for the betterment of safai karamcharis," the statement read.