Critical of the Centre, Bengal’s budget promises employment, social support

The FM said the state GDP is projected to grow at 8.4 per cent and the industry at 7.8 per cent in the ongoing 2022-23 fiscal

The West Bengal’s annual budget, presented on Wednesday, for the financial year ahead, included an announcement of a three per cent hike in dearness allowance for the state employees, and proposed a new credit facility for the youth.

The state government intends to allocate Rs 3,39,162 crore for the next financial year, an amount four times higher than in the year 2010-11 (Trinamool came to power in 2011).

Chandrima Bhattacharya, minister of state (independent charge) finance department, in the Mamata Banerjee-led West Bengal government presented the annual financial statement (budget) for the year 2023-24.

The budget statement – critical of the Centre – aims at spending high on social services, and has been termed as “employment-oriented” and of the people’s, and for every section of people, by Banerjee. The budget, however, failed to draw admiration of the BJP-led Opposition. The BJP observed that many critical issues didn’t get reflected in the minister’s statement.

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West Bengal’s economy – Bhattacharya stated – is expected to grow at 8.41 per cent in the current year (first advance estimates), higher than India’s growth of 6.95 per cent. Similarly, between April and November in the current year, Bengal’s growth has been 7.8 per cent compared to national growth of five per cent in terms of Index of Industrial Production (Manufacturing).

The statement held the Centre responsible for “adverse impact of wrong economic policies” – including demonetization and “sudden” implementation of GST – which have “put the common people into severe hardships but have (also) broken the frame of our federal structure”.

Bhattacharya contrasted the state’s budget with the Centre’s and highlighted reduced allocations in central schemes, including the much-talked rural job guarantee scheme.

On the social protection front, women who are beneficiaries of an ongoing public scheme will continue to receive financial assistance after turning 60 in the form of an old age pension scheme. The government has also proposed a death benefit scheme to support dependent family members of fishermen on account of their untimely death. The government intends to offer youth – 18-45 years – financial assistance, as a loan of up to Rs 5 lakh.

The budget talks of the state's upcoming Logistics Policy, 2023, which will facilitate the state secure a strategic position in the global supply chain, development of an industrial and economic corridor, soon to commence commercial mining at Deocha Pachami coal block that’s to draw an investment of Rs 35,000 crore, generating one lakh employment opportunities. The state’s IT-sector which has attracted investment for the creation of data centres is also expected to see investments in artificial intelligence and the Internet of Things.

The revenue deficit as a percentage of GSDP is expected to be at 1.8 per cent, the fiscal deficit is projected at 3.83 per cent, in the next year. Bengal’s debt is expected to be around 37.67 per cent of the GSDP in the coming year.