01

The West Bengal State Budget for the fiscal year 2024-25, presented by the Minister of State for Finance (Independent Charge), Chindrima Bhattacharyay, underscores a commitment to social sector development. The budget, totaling Rs. 3,66,166 crore, was unveiled in the state Assembly on February 7th, highlighting various policies for social development with significant allocations.

One of the key announcements involves doub-ling the monthly financial assistance under the Lakshmi Bhandar scheme to Rs. 1,000 per month from the current Rs. 500 for eligible women. This increase is expected to provide substantial financial relief to numerous families. Additionally, assistance for Scheduled Tribe (ST) and Scheduled Caste (SC) women under the scheme has been raised to Rs. 1,200 per month from  Rs. 1,000 per month. The enhanced allocation is projected to benefit 2.11 crore women in the state, requiring Rs. 14,000 crore in the fiscal year 2024-25.

The budget also includes a 4% Dearness Allowance (DA) for government employees. State employees’ organizations note that, compared to their counterparts in the Union Government, state employees lag in DA allocation. The budget further addresses the increase in the salary of civic volunteers.

Noteworthy allocations include Rs. 3,700 crore for the wages of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) workers. Despite the Union Government’s delayed funds for 100 days of work, attributed to ongoing financial corruption inquiries in the state, legal experts emphasize the obligation to continue the program for livelihoods, concurrently with the investigations.

In her speech, Minister Bhattacharyay raised concerns about the Central Government withh-olding dues in vital areas such as MGNREGA, Prime Minister Awas Yojna, Prime Minister Sadok Yojna, National Health Mission, 15 Finance Commission, and Food Subsidies. She asserted that the total dues amount to Rs.  1.18 lakh crore, equivalent to approximately 32% of the total state budget allocation, creating significant financial implications for West Bengal.

Budgetary Resources:

Total revenue receipts for 2024-25 are estimated at Rs.  2,36,251 crore, reflecting a 13% increase over the revised estimate for 2023-24. The state aims to raise 46% (Rs.  1,08,666 crore) from its own resources, while 54% (Rs. 1,27,585 crore) will come from the central government. Centre’s contributions

include the state’s share in central taxes (39% of revenue receipts) and grants (15% of revenue receipts). Tax devolution from the centre is estimated at Rs. 92,000 crore, marking a 12% increase from the previous fiscal year. Grants from the centre have increased by 17% to

Rs.  34,684 crore in 2024-25. State’s own tax revenue is estimated at Rs. 1,02,349 crore, reflecting a 10% increase from 2023-24. Notably, the state’s own tax revenue as a percentage of the state’s GDP in 2024-25 is slightly lower at 5.4%, compared to the revised estimate of 5.5% in 2023-24. Therefore, the state government must prioritize tax collection and reduce leakages. The fiscal deficit for 2024-25 is projected to be 3.6% of the State Gross Domestic Product (SGDP), amounting to Rs.  68,250 crore.