The announcements were part of the customary vote-on accounts for FY27 placed Thursday by the Mamata Banerjee government. A 4% rise in dearness allowances for state government employees has been announced in the state assembly despite the Supreme Court’s ruling earlier in the mandates that the state must clear 25% pending DA immediately.
The apex court also directed the state to form a committee for implementing a phased clearance of pending DA and submit a report to it.
The government Thursday presented a R. 4.06 lakh crore budget for 2026–27 as compared with Rs 3.89 lakh crore last year while the deficit is projected at Rs 63 crore and revenue deficit at Rs 21,759 crore.
The revenue deficit for FY26 was revised upwards to Rs 41,164 crore from the budgeted Rs 35,315 crore.
Among the big announcements was the Rs 500 rise in monthly allowance to state’s women under the government’s flagship Lakshmir Bhandar scheme. Women from the general category will now get Rs 1500 per month while women from scheduled tribes and scheduled caste categories will get Rs 1700 a month.
Finance minister Chandrima Bhattarcharya allocated an additional Rs 15,000 crore for this scheme over the Rs 17,000 crore spent in FY26. A massive 2.4 crore women between 25-60 years-old who do not hold a government job will also get this amount monthly.The government has proposed a monthly income raise of Rs 1000 for Asha and Anganwadi workers, para teachers and civic volunteers, a large section of whom are Trinamool sympathisers. This proposal will come into force from April. These workers typically earn between Rs 8000-2000 a month.
A compensation of Rs 5 lakh for the nearest kin has also been announced in case of death of these workers while at work.
“The interim budget is, as expected, both a populist and a consumption-oriented, socially inclusive, and demand-stimulating budget,” said Bharat Chamber of Commerce president Naresh Pachisia. This would boost disposable income at the bottom of the pyramid segment and is expected to directly translate into higher spending on essential goods and services, he said, adding: “The long term impact will, however, depend on fiscal sustainability and growth.”
While the state runs 94 social protection schemes, opposition leaders often criticise the Mamata Banerjee government for doling out several non-productive allowances.
Amit Mitra, principal chief advisor to chief minister and the finance department, said Thursday that the money spent is being used for asset creation.
The budget projected fiscal deficit projected at 2.91% and revenue deficit at 1.01% of state GDP while the state’s debt declined to 38% of the GDP from 40% a year back.
“More than 1.72 crore people have been brought out of poverty. Implementation of 94 social protection schemes have provided security to our people in life and livelihood,” finance minister Bhattacharya said.
She said more than 2.5 crore jobs have been created in the state in the private sector, public sector and self-employed space. Nearly 93 lakh MSMEs, the second highest in India, operate in West Bengal, contributing 36.40% of female MSME entrepreneurs of the country.
She announced an extension of exemption of agricultural income tax on green tea leaves for another fiscal year till March 31, 2027, and the exemption of cess on tea production has also been extended.
