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Bengal budget 2026: 20 pc DA hike, 1 lakh jobs, 5 new districts

In a significant relief for state government employees, the Finance Minister announced an additional 20 per cent Dearness Allowance (DA), raising the total DA from 18 per cent to 38 per cent.

News Arena Network - Kolkata - UPDATED: June 22, 2026, 03:40 PM - 2 min read

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Chief Minister Suvendu Adhikari reiterated the government’s commitment to bridging this gap in the near future. “We have kept our promises. The state is under heavy debt, but give us time—we will match the central DA,” he said.


The first full-fledged budget of the BJP-led West Bengal government, presented in the Legislative Assembly on Monday by Finance Minister Swapan Dasgupta, unveiled a sweeping set of measures aimed at boosting employee welfare, generating employment, strengthening administration, and promoting entrepreneurship. From a historic Dearness Allowance (DA) hike to the creation of one lakh government jobs and five new districts, the budget outlines an ambitious roadmap for the state’s economic and administrative future.

 

In a significant relief for state government employees, the Finance Minister announced an additional 20 per cent Dearness Allowance (DA), raising the total DA from 18 per cent to 38 per cent. Pensioners will also benefit from a similar 20 per cent increase in Dearness Relief (DR). The revised rates will come into effect from October 1, 2026.

 

 

The move aligns with a key promise made in the BJP’s ‘Sankalpa Patra’ to bring state DA at par with central government levels. However, a gap of 20 percent still remains, as central government employees currently receive 58 percent DA.

 

Chief Minister Suvendu Adhikari reiterated the government’s commitment to bridging this gap in the near future. “We have kept our promises. The state is under heavy debt, but give us time—we will match the central DA,” he said.

 

One lakh government jobs, focus on women and youth

The budget also announced a major employment push, with plans to fill one lakh vacancies across various government departments. Of these, 33 per cent of the posts will be reserved for women, translating to approximately 33,000 jobs.

 

Additionally, provisions have been made to reserve 10 per cent of posts for Agniveers returning from the Centre’s Agnipath scheme.

The Education Department will see the recruitment of 50,000 teachers and staff, while 20,000 vacancies will be filled in the police department to strengthen law enforcement.

 

In a significant relief to job aspirants, the government has extended the existing five-year relaxation in the upper age limit for recruitment by another two years.

 

Salary hikes across sectors and scheme to boost entrepreneurship

Several categories of workers will see salary increases under the new budget. Anganwadi and ASHA workers, along with para-teachers, will receive a monthly hike of Rs 5,000. Mid-day meal cooks will see an increase of Rs 1,000, while civic volunteers, home guards, Green Police personnel, and NVM workers will receive an additional Rs 2,000.

 

To tackle unemployment beyond government job creation, the state has introduced the ‘Udyam Credit Card’ scheme aimed at supporting young entrepreneurs.

 

Under the scheme, around two lakh youths will receive financial assistance of Rs 10 lakh each to start businesses. Of this, Rs 5 lakh will be provided as a non-repayable government grant, while the remaining Rs 5 lakh will be offered as an interest-free loan with flexible repayment terms.

 

An initial allocation of Rs 200 crore has been made for the scheme. Experts believe this initiative could significantly boost small and medium enterprises, startups, and cottage industries across the state.

 

Administrative overhaul: Five new districts announced

In a major administrative restructuring move, the government announced plans to create five new districts—Kolkata, Basirhat, Sundarban, Jangipur, and Arambagh.

 

The budget also proposed the creation of new police districts, subdivisions, and municipalities to improve governance and service delivery. A new police district will be established in Contai (Kanthi), while a new subdivision will be created in Gopiballavpur.

New municipalities have been proposed in Shibmandir, Gazole, Chanchal, Belda, Bagnan, Jaigaon, Kolaghat, Kamarpukur, and Tungidighi, reflecting rapid urbanization in these regions.

 

Observers believe that these changes aim to address administrative challenges arising from population growth and geographical constraints, while also potentially influencing future political dynamics in the state.

 

Focus on governance and economic growth

The budget reflects the government’s broader strategy of combining welfare measures with structural reforms. While addressing employee demands and unemployment concerns, it also emphasises decentralisation, improved governance, and support for entrepreneurship.

 

With a mix of immediate relief measures and long-term policy initiatives, the West Bengal Budget 2026 signals a decisive push toward economic revitalization and administrative efficiency in the state.

 

Also read: PM Poshan replaces mid-day meal structure in Bengal schools

 

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