In pre-poll year, Mamata Banerjee govt tables Rs 3.89 lakh cr Budget, hikes 4% DA

Kolkata: West Bengal Finance Minister Chandrima Bhattacharya on Wednesday presented a Rs 3.89-lakh crore budget for 2025-26 with a significant focus on social welfare, and announced a four per cent hike in dearness allowance (DA) for state government employees.

The government also unveiled a series of infrastructure and agricultural development projects in its budget, allocating significant funds for rural connectivity, river erosion control, and agrarian support initiatives.

In the last full-fledged budget of the Mamata Banerjee government before the 2026 Assembly elections, Bhattacharya tabled in the assembly a Rs 3.89 lakh crore budget.

In the previous budget, the state saw an allocation of Rs 3.67 lakh crore, marking an 8 per cent increase from the previous year 2023-24.

Bhattacharya announced that the state government would increase the Dearness Allowance (DA) by four per cent from April 1, 2025.

This would bring the total DA to 18 per cent for over 10 lakh state government employees and pensioners. The move is aimed at addressing ongoing concerns raised by the employees who have been agitating for better compensation.

"With this four per cent increase in DA, we are reaffirming our commitment to the welfare of our employees," Bhattacharya said, underlining the state's focus on the well-being of its workforce.

In the budget speech, Bhattacharya announced an allocation of Rs 44,000 crore for rural development and Panchayats.

A major highlight of the budget is the Rs 1,500 crore allocation for the improvement of rural roads across the state, This is aimed at enhancing connectivity and boosting economic activity in remote areas.

In a bid to address the persistent issue of river erosion, the government set aside Rs 200 crore, which would provide much-needed relief to vulnerable riverine communities.

Further strengthening its focus on infrastructure, the government sanctioned Rs 500 crore for the construction of a 4.75 km-long bridge over the Ganga river at Gangasagar, which is expected to facilitate smooth access for pilgrims and boost local economies.

Under the 'Banglar Bari' housing project, the state plans to construct 16 lakh new houses in the upcoming financial year, and a proposal of Rs 9,600 crore has been allocated for the initiative.

In an attempt to enhance housing support for the underprivileged, the state had allocated Rs 14,000 crore under the scheme last year.

This initiative aims to provide financial assistance for the construction of homes for the poor and marginalised sections of society.

In the budget announcement, Bhattacharya stated that the state would continue with the development of roads and infrastructure under the ‘Pathshree’ project.

An additional Rs 1,500 crore has been allocated for this project in the next financial year.

For the ‘Ghatal Master Plan’, a mega project to dredge riverbeds and strengthen embankments of at least 10 major rivers in the state, the government has allocated Rs 500 crore this year. The total cost of the project is Rs 1,500 crore.

A new project called ‘Nadi Bandhan’ was announced for river-centric areas in the state. The project has been allocated Rs 200 crore, and it will focus on measures to prevent riverbank erosion.

Additionally, Finance Minister Bhattacharya announced that 70,000 ASHA workers will be provided with smartphones as part of the budget's welfare measures.

There was no announcement regarding the Lakshmi Bhandar scheme in the budget.

Speaking at a press conference after the budget was presented, Chief Minister Mamata Banerjee said, "Lakshmi Bhandar is a popular scheme. Altogether 2.21 crore women benefit from it. The state government spends Rs 50,000 crore on this. Other states, especially the BJP-ruled states, are copying the Lakshmi Bhandar scheme." Expressing dissatisfaction with the budget, BJP lawmakers staged a walkout after the finance minister ended her speech.

They raised slogans against the government, highlighting the difference between the DA given by the central government and the state.