On 12 February 2025, Finance Minister of West Bengal (WB), Chandrima Bhattacharya, presented a Rs 3.89 lakh crore (3,89,194 crore) budget for the financial year 2025-26 (FY 26) in the assembly.
- In the FY25 budget, the state saw an allocation of Rs 3.67 lakh crore, marking an 8% increase from the FY24.
- The outstanding debt for FY25 (revised) was Rs.7,06,531 crore, the amount in the FY26 budget has been pegged at Rs.7,71,670 crore. The revised fiscal deficit for the year FY25 was Rs.73,017 crore, while in this budget the amount has been estimated to be Rs.73,177 crore.
- While the revised grant-in-aid from the Government of India(GoI) for FY25 was Rs.28,431 crore, the grant-in-aid for the FY26 budget has been pegged at Rs.37,157 crore.
Key Highlights:
i.The state budget highlights a strong focus on rural development, infrastructure, and social welfare.
ii.The state’s Gross State Domestic Product (GSDP) recorded a 6.8% growth in 2024-25 (FY 25), exceeding India’s overall growth rate of 6.37%.
- In FY25, the industry sector registered a growth of 7.3%, the agriculture and allied sector grew at a rate of 4.2%, and services sector witnessed a growth rate of 7.8%.
iii.There is an announcement of a 4% increase in Dearness Allowance (DA) for state government employees and pensioners, bringing the total DA to 18% effective from 1 April 2025.
iv.For capital expenditure, the government has proposed Rs 72,818.72 crore for 2025-26, an increase of Rs 11,826.62 crore from the current fiscal. Of this, Rs 19,724.72 crore falls under the Social Services category
Key Allocations:
i.Among the allocations, Rs 44,000 crore is earmarked for rural development and Panchayats.
- The state governemnt has allocated Rs.38,762 crore to the Women and Child Development and Social Welfare Department, WB.
ii.An allocation of Rs 1,500 crore has been made for upgrading rural roads under various development schemes.The ‘Pathshree’ project for road and infrastructure development continues, with an additional Rs 1,500 crore allocated.
iii.The state government has set aside Rs 200 crore to tackle erosion in vulnerable riverine areas.
- Furthermore, Rs 500 crore has been allocated for a 4.75 kilometres (km) bridge over the Ganga at Gangasagar, aimed at improving accessibility for pilgrims and supporting the local economy.
iv.The ‘Ghatal Master Plan’, focusing on dredging rivers and strengthening embankments, has received Rs 500 crore this year, with the overall project costing Rs 1,500 crore.
v.’Nadi Bandhan’ Initiative :The newly introduced ‘Nadi Bandhan’ project, aimed at preventing riverbank erosion in river-centric areas, has been allocated Rs 200 crore.
vi.Banglar Bari’ Housing Project: Under the Banglar Bari’ Housing Project State plans to construct 16 lakh new houses in 2025-26, with a budget of Rs 9,600 crore.
vii.The budget’s Rs 1,229 crore allocation for Ministry of Micro, Small and Medium Enterprises(MSMEs) is anticipated to further support small businesses
Key Welfare Measures:
i.It was announced that 70,000 Accredited Social Health Activists (ASHAs) workers would receive smartphones as part of the welfare initiatives.
ii.Although no fresh allocations under the Lakshmi Bhandar Scheme were announced, the scheme continues to benefit 2.21 crore women, with a total state expenditure of Rs 50,000 crore.
About West Bengal (WB):
Chief Minister (CM)– Mamata Banerjee
Governor– C. V. Ananda Bose
Capital– Kolkata
National Park (NP)- Sundarban NP, Neora Valley NP
