Expense for Durga Puja festivities concerns experts as Bengal faces continued financial crunch

According to the Economic Review 2021-22, West Bengal’s debt as a percentage of GSDP stood at 37.05 in 2020-21

The West Bengal government, on Monday, announced monetary support to organisers of Durga Puja pandals/venues. While announcing a special procession, the Trinamool Congress-led state government said the state would hike the financial support to the clubs/committees that organise the festivities by Rs 10,000—to assist hundreds of clubs in being a part of the state’s biggest cultural celebrations.

The current financial aid stands at Rs 60,000 for each organiser and with about 43,000 registered puja organising committees, the rough estimate of the state’s monetary help stands at about Rs 258 crore.

While the announcement brings joy, it also flags a concern about the state’s treasury. The government has taken a decision to spend at a time when it is in a tight fiscal position and is jostling with the Centre for the release of funds for executing public schemes.

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Even while announcing the financial aid to puja organisers, Chief Minister Mamata Banerjee had reminded the people about the Centre’s freeze on the funds due for the 100-day rural jobs scheme.

Earlier this month, too, the chief minister had met Prime Minister Narendra Modi in this regard. In a letter, the chief minister had stated that “the amount that is due to the state from the central government as on July 31, 2022, has been estimated to be around Rs 1,00,968.44 crore.”

The state’s finances with severe debts are a concern, as argued by the political opponents. One key indicator that offers an insight is debt to gross state domestic product (debt-GSDP) ratio.

According to the Economic Review 2021-22, published by the state government’s Department of Planning and Statistics, West Bengal’s debt as a percentage of GSDP stood at 37.05 in 2020-21. The debt-GSDP ratio for that year placed West Bengal in the league of states with the highest debt burden in the country.

However, the fiscal concerns are very much the government’s as, just like in other states, Bengal’s politics are also subject to popular public perceptions. While political and socio-economic experts would question the Trinamool-led government’s move, the puja clubs that represent common citizens in their localities would welcome it.