Last year, it had earmarked Rs 526 crore for advertisement, drawing severe criticism from BJP and Congress.
Former AAP leader Prashant Bhushan had also criticised the government's move. However, only about Rs 100 crore was spent on it and the rest was used for other works.
"We have allocated Rs 200 crore for information and publicity in the budget," Chief Minister Arvind Kejriwal told reporters.
Earlier, various departments of the government used to spend funds for advertisements on their own, making it difficult to estimate the exact expenditure on this account.