West Bengal Finance Minister Chandrima Bhattacharya on Wednesday presented West Bengal Budget 2025-26 of ₹3.89-lakh crore budget with a significant focus on social welfare, and announced a four per cent hike in dearness allowance (DA) for state government employees.
The government also unveiled a series of infrastructure and agricultural development projects in its budget, allocating significant funds for rural connectivity, river erosion control, and agrarian support initiatives.
This would bring the total DA to 18% for state government employees, providing much-needed relief to them, amid rising inflation. The move is aimed at addressing ongoing concerns raised by government employees who have been agitating for better compensation.
The additional DA hike comes as part of the government’s efforts to improve the financial status of its workforce and ensure fair compensation for their services.
‘With this four per cent increase in DA, we are reaffirming our commitment to the welfare of our employees,’ Bhattacharya said, underlining the state’s focus on the well-being of its workforce.
A major highlight of the last full-fledged budget of the Mamata Banerjee government before the 2026 assembly elections, is the ₹1,500 crore allocation for the improvement of rural roads across the state.
West Bengal Budget 2025-26 Highlights
This budget marks the final full-fledged financial plan of the Mamata Banerjee-led government before the 2026 Assembly elections. Bhattacharya emphasized that the budget was designed to bolster economic growth while ensuring social security for vulnerable sections:
- In a bid to enhance housing support for the underprivileged, the state allocated ₹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
- The government has allocated ₹200 crore to address the persistent issue of river erosion, providing relief to vulnerable riverine communities.
- The government has sanctioned ₹500 crore for the construction of a 4.75 km-long bridge over the Ganga river at Gangasagar, aimed at facilitating smooth access for pilgrims and boosting local economies.
- Under the ‘Banglar Bari’ project, the state plans to construct 16 lakh new houses in the upcoming financial year, with ₹9,600 crore allocated for the initiative.
- ₹1,500 crore has been allocated for road construction and enhancement under the ‘Pathshree’ project, to modernise road infrastructure and ensure safer transportation networks.
- The ‘Ghatal Master Plan,’ focused on riverbed dredging and embankment reinforcement for ten major rivers, has been allocated ₹500 crore for the upcoming year, with a total project cost of ₹1,500 crore.
- The newly introduced ‘Nadi Bandhan’ initiative, aimed at addressing riverbank erosion and water management, has been allocated ₹200 crore.
- In support of healthcare workers, Bhattacharya announced that 70,000 Accredited Social Health Activists (ASHA) workers would receive smartphones, enhancing healthcare services, particularly in rural areas.
- The budget made no mention of new provisions for the Lakshmi Bhandar scheme. Chief Minister Mamata Banerjee defended the scheme, stating that it benefits 2.21 crore women, with the state spending ₹50,000 crore annually on the initiative.
Conclusion
The West Bengal Budget 2025-26 balances economic growth with welfare measures, emphasising infrastructure, rural development, and employee benefits. The 4% DA hike and major allocations reflect the government’s commitment to social security and progress. However, political opposition and fiscal concerns remain key challenges. As implementation begins, the effectiveness of these measures will determine their impact on the state’s economy and public welfare, shaping the political landscape ahead of the crucial 2026 Assembly elections. If you need any legal queries please get in touch with our experts from Vakilsearch.
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