Kolkata, Jun 21 (PTI) The BJP government’s first full budget in West Bengal, to be presented in the Assembly on Monday, is expected to strike a balance between sustaining welfare commitments and pursuing fiscal consolidation amid one of the heaviest debt burdens among major states.
Industry and employment generation are also expected to be key focus areas of the budget as the government seeks to attract large investments and boost economic activity.
Finance Minister Swapan Dasgupta will present the 2026-27 budget of the government led by Chief Minister Suvendu Adhikari, nearly two months after the BJP’s victory ended 15 years of Trinamool Congress rule in the state.
Officials said the budget is likely to adhere to the BJP’s poll promises while signalling a shift from cash transfer-led welfare measures towards employment generation, industrial growth and revenue mobilisation.
In its interim budget earlier this year, the previous TMC government had estimated expenditure of Rs 4.06 lakh crore, of which Rs 1.68 lakh crore, or 41.4 per cent, was earmarked for the social sector.
The state’s outstanding debt is estimated at over Rs 7.5 lakh crore, with the debt-to-GSDP ratio hovering around 38 per cent, among the highest for major states. Interest payments alone account for nearly Rs 49,000 crore annually, constraining the state’s fiscal space.
A finance department official said social sector expenditure was unlikely to witness any significant reduction, though direct benefit transfer schemes may be subjected to tighter scrutiny and targeting.
“The budget will be in line with the manifesto. Social spending will continue along with infrastructure and other capital expenditure, but there will be restraint in the growth of direct cash benefit outgo despite the enhanced allocation for the flagship women’s welfare scheme,” the official told PTI.
The previous government had allocated more than Rs 42,000 crore to the Women and Child Development and Social Welfare Department in its 2026-27 budget, with a substantial portion linked to the Lakshmir Bhandar scheme.
The BJP government has initiated the replacement of the Lakshmir Bhandar scheme with the Annapurna Yojana, under which eligible women are to receive higher monthly assistance.
Government sources said beneficiary verification exercises have led to the removal of around 30 lakh ineligible names.
Around 2.4 crore beneficiaries were covered under the previous TMC government’s Lakshmir Bhandar scheme.
Officials said the budget could unveil a medium-term fiscal roadmap, including measures to reduce the fiscal deficit over the next three to five years and explore restructuring of costly legacy debt through a dedicated debt management mechanism.
The government is also expected to focus on augmenting revenue without imposing fresh taxes, though options remain limited under the GST regime except in areas such as excise and stamp duty.
“The major challenge is to raise revenue without raising taxes,” Dasgupta had told PTI on the day he assumed charge as finance minister.
Among the proposals under consideration are transparent e-auction systems for sand and minor minerals, monetisation and long-term leasing of surplus government land, and stricter action against GST evasion.
A senior industry department official said both fiscal and non-fiscal reforms could be announced to improve the investment climate.
“The government is examining reforms relating to land availability, including issues such as upper land ceiling norms and utilisation of unused industrial land. A series of policy measures aimed at facilitating industrial investment can be expected,” the official said.
The budget may also outline region-specific industrial strategies for the Kolkata metropolitan region, Durgapur-Asansol, Haldia and Siliguri, along with measures to strengthen MSMEs through easier access to credit, interest subsidies and cluster-based development.
Officials said the government was likely to push for the modernisation of industrial training institutes through public-private partnerships and introduce incentives for companies imparting skills training to local youth.
“The government is examining reforms relating to land availability, including issues such as upper land ceiling norms and utilisation of unused industrial land. A series of policy measures aimed at facilitating industrial investment can be expected,” the source said.
Special packages for north Bengal, including drinking water infrastructure and tourism incentives, could feature in the budget.
While welfare commitments are likely to remain substantial, officials indicated the broader theme of the budget would be to shift the state’s economic narrative towards investment, employment and enterprise creation.
“The emphasis will be on moving from welfare dependency towards wealth creation,” a senior official said. PTI BSM MNB
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