Bengal Government Unveils Rs 3.66 Lakh Crore Budget, Accuses Centre Of Imposing Financial Blockade

The Mamata Banerjee-led West Bengal government on Thursday tabled a Rs 3.66-lakh crore budget for the fiscal year 2024-25, emphasizing support for farmers, employment creation, and an array of schemes to broaden the base of beneficiaries ahead of the upcoming Lok Sabha polls.

Presenting the budget, Minister of State (independent charge) for Finance Chandrima Bhattacharya criticised the BJP-led central government, accusing it of imposing a 'financial blockade' by withholding the state’s dues amounting to Rs 1.18 lakh crore.

"I propose a budget of Rs 3, 66,166 crore for the financial year 2024-25," Bhattacharya announced in the assembly.

The budget for 2024-25 represents an almost eight per cent increase over the previous year's allocation of Rs 3.39 lakh crore.

The Economic Review for 2023-24 indicated West Bengal's Gross State Domestic Product (GSDP) grew at 7.65%, outpacing the national average of 7.32%.

Bhattacharya highlighted the manufacturing sector's Gross State Value Added (GSVA) growth at 7.26%, significantly exceeding the national average of 6.53%.

Accusing the central government of infringing upon the state's rights in a federal structure, she said, 'The Centre has immorally withheld our due money. We will not allow this economic blockade to hinder the state's growth. The state's dues from the central government are nearly Rs 1.18 lakh crore.

In 2024-25, the state's revenue is poised to soar by an impressive 4.84 times, reaching Rs 1,02,349 crore from its 2010-11 level of Rs 21,129 crore.

To engage various demographic groups including youth and women, Bhattacharya announced various schemes for government employees, youth, women, fishermen, artisans, and weavers.

Addressing the delay in payments under the MGNREGA scheme, the state government introduced the 'Karmasree' scheme to ensure a 50-day-a-year minimum work guarantee for job card holders.

“The Centre has deprived job card holders of their due wages for a long time. The chief minister has announced the release of funds for the 21 lakh job card holders within this month. A new scheme named Karmasree will be launched which will ensure 50 days of work to each job card holder,” she said.

To facilitate ease of doing business, the finance minister announced extension of the policy for converting leasehold land to freehold across government departments, parastatals, urban local bodies, and rural local bodies.

“The Urban Land Ceiling Act will be revisited and examined. In addition, land ceiling provisions under the West Bengal Land Reforms Act will also be revisited and examined,” she said.

Specifically, investment in physical infrastructure is anticipated to experience remarkable growth, soaring by 6.02 times to reach Rs 10,595 crore in 2024-25 from Rs 1,759 crore in 2010-11, the budget statement said.

Capitalising on the success of the 'Lakshmir Bhandar', a financial assistance scheme for women, the budget proposed raised allowance for SC-ST people.

"The budget announces proposals to increase the allowance to Rs 1,200 for the SC and ST community, whereas, for other categories, it has been increased to Rs 1,000 under the Lakshmir Bhandar scheme," she said.

Reaching out to agitating state government employees over the implementation of DA, the budget announced a further four per cent rise in dearness allowance from May 2024.

"We have given 4% DA from January 2024. To provide some relief against inflation, I am announcing another 4% DA from our limited resources,” she said.

Introducing a 'Gender and Child Budget,' Bhattacharya aimed at uplifting women's welfare and children's holistic development, with an allocation of Rs 96,271 crore for 2024-25.

While noting that West Bengal's cultural ethos reflects profound reverence for women and affection for children, Bhattacharya said the Gender and Child Budget was taken up to formalise the goals into fiscal commitments, translating into better results through continuance in policy and improved accountability.

To support the fishing community, the finance minister introduced the 'Samudra Sathi' scheme offering financial assistance of Rs 5000 to registered fishermen in three districts for two months.

The fishing ban for two months from mid-April affects the livelihood of the fishermen, she said adding that the scheme will benefit nearly 2 lakh people.

The budget proposed a new Apprentice Scheme offering monthly stipends ranging from Rs 1,500 to Rs 2,500 to people aged 18-40 years, benefiting nearly one lakh individuals.

Bhattacharya also announced the West Bengal Artisans Financial Benefit Scheme 2024, providing individual artisans with one-time grants of up to Rs 15,000 and up to Rs 10 lakh for artisan groups under an industrial cooperative society.

The budget included plans to establish a Minorities Cultural Development Centre, showcasing the cultural heritage of six minority communities: Muslim, Sikh, Christian, Buddhist, Jain, and Parsi.

During a post-budget press conference, Chief Minister Mamata Banerjee said, "It is a pro-people budget which has tried to reach out to all segments and sections of the society."

She said her government will initiate fund disbursement for 11 lakh families in the state under Awas Yojna if the Centre fails to release funds by May 1.

The opposition BJP criticised the budget as 'clueless'.

"There is no fiscal discipline. This budget is a clueless budget with an eye on elections," Leader of the opposition Suvendu Adhikari said.

As per the budget statement, the proportion of debt to GSDP is projected to decline from 40.65% in 2010-11 to 36.88% in 2024-25, signaling a positive trend in fiscal management.

The fiscal deficit, relative to GSDP, is expected to decrease to 3.63% in 2024-25, compared to 4.24% recorded in 2010-11.

Sector-wise expenditure is set to witness a significant surge, with projected outlays escalating to Rs 92,840 crore in 2024-25, up from a modest Rs 6,846 crore in 2010-11.