Job Creation, Rural Infra Thrust In TMC’s Last Budget Before Bengal Polls
Job Creation, Rural Infra Thrust In TMC’s Last Budget Before Bengal Polls
Another 4% DA hike for state govt employees; Finance Minister says Bengal’s economic growth surpassed country’s in all sectors — agri, industry & services.
In the last full-fledged Budget before West Bengal goes to Assembly polls early next year, the TMC government, led by Chief Minister Mamata Banerjee, on Wednesday laid out a series of infrastructure and agriculture projects focusing on the state’s rural population.
For government employees and pensioners, the Dearness Allowance (DA) was hiked by another 4 per cent from April 2025, bringing it to 18 per cent, in line with the recommendations of the 6th Pay Commission and aimed at alleviating the impact of inflation.
Presenting the Rs 3.89-lakh crore Budget for 2025-26 in the state Assembly, Minister of State for Finance (Independent Charge) Chandrima Bhattacharya said the TMC government’s programmes, policies and schemes are driven by “ethos of inclusion” and keeping that vision in mind she has prepared the 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.
Stating that the state’s economic growth rate has exceeded the country’s – 6.87% of state GDP vis-a-vis 6.37% of the country’s GDP rate – Bhattacharya said “job creation lies at the core of our developmental model”.
Amid concerns over mounting debt, revenue constraints, and expenditure management, which have been challenging the state’s financial stability, the minister said that West Bengal’s economy has shown strong growth across all three sectors — agriculture, industry, and services — “surpassing national figures”.
“The industrial sector registered a growth of 7.3 per cent, significantly higher than India’s 6.2 per cent, while agriculture and allied sectors grew by 4.2 per cent, compared to India’s 3.8 per cent. The services sector led with a growth rate of 7.8 per cent, surpassing India’s 7.2 per cent,” she told the Assembly.
“All three sectors in West Bengal have made significant contributions, showcasing the resilience of our economy,” Bhattacharya added.
The Finance Minister also highlighted the state’s “success in reducing unemployment”.
As of January 2025, India’s unemployment rate was 7.93 per cent, whereas West Bengal’s rate was just 4.14 per cent, she said, adding, “This positive trend was also evident in the third quarter of 2024-25, when West Bengal’s unemployment rate was significantly lower than the national average.” Bhattacharya credited the achievement to Chief Minister Mamata Banerjee’s focus on job-centric growth.
Additionally, Bhattacharya stated that “sustained economic growth and socio-economic progress” of West Bengal helped the government to lift 92 lakh people out of poverty by 2021 in the state, and that number has now increased to 1.72 crore.
The government allocated significant funds for rural connectivity, river erosion control, and agrarian support initiatives.
Bhattacharya announced an allocation of Rs 44,000 crore for rural development and Panchayats.
A major highlight of the Budget was 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,” she said.
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.”
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