West Bengal budget gives priority to political exigency over economic reality
The West Bengal minister of state for finance (independent charge), Chandrima Bhattacharya, on Wednesday (February 15), gave priority to political exigency over economic reality, while presenting a sop-filled ₹3.39 lakh crore budget for 2023-24.
From extending credit facilities to young entrepreneurs, hiking dearness allowances for state government employees and pensioners to announcing sops for women, farmers, fishermen, the state budget is packed with populism, a hallmark of the Mamata Banerjee government.
The finance minister in her about 30 minutes speech however did not spell out, except for stating that the GST collection has been augmented, as to how the debt-stressed state government will fund the slew of populist schemes.
Allocation for construction of roads in rural areas
Keeping an eye on the ensuing panchayat elections, the budget expectedly focused on rural areas launching a new scheme for construction and maintenance of village roads. The finance minister in her budget allocated ₹3,000 crore for the construction of 11,500-km of roads in rural areas.
The announcement comes close on the heels of the state government directing all the district magistrates to start tendering process for repair and construction of village roads, without waiting for the Centre to release funds under the Pradhan Mantri Gram Sadak Yojana.
Also read: West Bengal FM unveils budget of Rs 3.39-lakh crore for 2023-24
The Centre has withheld release of funds to the state government under many central government schemes alleging irregularities.
Financial crunch, ‘revadi culture’ thrives
Bhattacharya in her budget speech flayed the BJP-led Union government for non-release of funds. But, she added that despite the financial crunch it would continue with its welfare schemes, which the BJP terms as “revadi culture.” This term alludes to a popular north Indian sweet often distributed free during festivals.
Apart from the new rural road scheme, the finance minister announced waiver for irrigation water tax for farms, agricultural income tax on tea gardens for 2023-24 and 2024-25 and one-time financial assistance of ₹2 lakh to dependent family members of any government registered fisherman in case of death.
The other big-ticket announcements include setting up of a ₹350 crore startup fund to extend loan up to ₹5 lakh each to 2 lakh youths to start their own businesses and 3 per cent hike in dearness allowances for state government employees and pensioners with effect from March. The association of state employees had been demanding that their DA be hiked to 42 per cent.
Rejecting the “meagre hike”, the employees have now threatened to go for a pen-down strike.
The state government further extended the two per cent rebate on the stamp duty and a 10 per cent reduction in circle rates for property by another six months.
Also read: GST compensation: West Bengal says Centre owes it Rs 2,409 crore
Special sops for women
The budget has another special sop for women, who are considered to be the strongest vote base of the ruling Trinamool Congress.
All women beneficiaries of the Lakshmi Bhandar Scheme will be entitled for a monthly pension of ₹1,000 on crossing 60 years of age.
The Lakshmi Bhandar scheme can be availed by women in the age group of 25-60. These women will now be covered under the new pension scheme. The finance minister, further sought to provide some financial assistance to her fellow legislators, by hiking their annual allocation under the state-government sponsored local area development funds for MLAs from ₹60 lakh to ₹70 lakh.
With an outstanding debt of ₹5.86 lakh crore, the state government will, however, continue to find it difficult to fund its welfare schemes, unless the Centre clear its outstanding dues, said a senior state bureaucrat.
