The West Bengal Budget for FY 2025-26, introduced on February 12, 2025, by Finance Minister Chandrima Bhattacharya, marks a defining moment for the state’s economic trajectory. With a total allocation of ₹3.89 lakh crore, the budget highlights the state’s growth, fiscal prudence, and an ongoing commitment to social welfare programs aimed at improving the lives of its residents.

Economic Growth: A Bright Future Ahead

In 2024-25, West Bengal’s Gross State Domestic Product (GSDP) grew by an impressive 6.8%, outperforming India’s national growth rate of 6.37%. This growth was driven by several key sectors, with the industrial sector leading the charge, expanding by 7.3%, surpassing the national growth rate of 6.2%.

The agriculture sector also demonstrated resilience, recording 4.2% growth, beating India’s 3.8% growth. Meanwhile, the services sector—the backbone of modern economies—saw a healthy rise of 7.8%, outpacing India’s 7.2%.

Furthermore, the state’s unemployment rate is a standout success. At 4.14% as of January 2025, it remains significantly lower than the national average of 7.93%, a reflection of the state’s growing job opportunities.

Fiscal Highlights: Growth with Responsibility

West Bengal has not only focused on growth but has taken significant strides in fiscal discipline. The state’s revenues grew by 10% from the previous year, with a major boost from the Settlement of Disputes (SoD) Scheme in commercial taxes, which brought in over ₹900 crore.

The debt-to-GSDP ratio has also improved, dropping from 40.65% in 2010-11 to 37.49% in 2022-23, showcasing effective management of public finances and a gradual reduction in financial vulnerability.

Welfare at the Forefront: Empowering the People

A key feature of this budget is its focus on social welfare. A remarkable ₹38,762.03 crore has been earmarked for the Women and Child Development and Social Welfare Department. This allocation will ensure continued support for marginalized and vulnerable communities across the state.

Perhaps the most anticipated announcement was the 4% increase in Dearness Allowance (DA) for government employees and pensioners. Effective from April 1, 2025, this will raise the DA to 18%, offering relief to the state’s dedicated public servants during these times of inflation.

Infrastructure & Development: Building a Stronger Tomorrow

West Bengal’s commitment to rural development and infrastructure growth is clear with several large-scale projects. With ₹1,500 crore allocated to improve rural roads, the state aims to connect remote villages to urban hubs, boosting economic activity and enhancing accessibility.

Additionally, the Banglar Bari initiative, aimed at providing 16 lakh new homes under a ₹9,600 crore project, underscores the government’s commitment to affordable housing for all.

The budget also highlights measures to address river erosion, a persistent challenge for many riverine communities. With an allocation of ₹200 crore, the state aims to protect vulnerable areas from the ravaging effects of riverbanks eroding.

A key infrastructure project that stands out is the construction of a 4.75-km-long bridge at Gangasagar. With an allocation of ₹500 crore, this bridge will facilitate smoother access for the thousands of pilgrims visiting this sacred site, boosting local economies and fostering spiritual tourism.

Political Context: A Turning Point

This budget comes in the midst of Chief Minister Mamata Banerjee’s third consecutive term. As the state prepares for the 2026 assembly elections, this budget holds special significance. It will be the final full budget before the elections, with a vote-on-account expected in February 2026 to ensure continued spending until a new government is formed.

The budget is more than just a fiscal statement—it is a roadmap for the future, reflecting the state’s priorities: economic growth, infrastructure development, and welfare for the people. As West Bengal continues to march toward its goals, this budget offers a sense of optimism, balance, and responsibility, with a firm focus on uplifting the most vulnerable while ensuring sustainable economic growth.

This bold vision is set to lay the groundwork for a stronger, more prosperous West Bengal, where development, welfare, and fiscal health walk hand in hand.