In a significant shift from past fiscal practices, the new BJP-led West Bengal government has placed immediate emphasis on restructuring the state’s internal finances, prioritising budget reform over dependence on central assistance.
When Mamata Banerjee assumed office fifteen years ago, her administration frequently engaged in repeated visits between Delhi and Kolkata, seeking financial relief and special packages to address the state’s debt burden. In contrast, the present administration under Chief Minister Suvendu Adhikari has opted for a different approach—focusing from the outset on strengthening the state’s “own budget.”
This policy direction was underscored during a high-level meeting on Wednesday, where Chief Secretary Manoj Agarwal reviewed financial allocations with officials of the Finance Department. According to sources, Agarwal expressed strong concern over the disproportionately low allocation for capital expenditure.
Despite a total state budget of approximately Rs 4 lakh crore, only Rs 41,000 crore—roughly 10%—has been earmarked for infrastructure development, including roads, bridges, schools, and hospitals. The Chief Secretary reportedly described this figure as “astonishing,” questioning why such a limited portion of funds is being directed toward long-term asset creation.
Sources at Nabanna, the state secretariat, indicated that Agarwal also raised broader concerns regarding the structure of expenditure. He questioned why a significant share of the budget continues to be spent on grants, welfare schemes, and administrative costs, rather than on productive investments that could drive sustainable growth.
According to officials, the development model outlined by Chief Minister Adhikari places strong emphasis on increasing capital expenditure to build durable public assets, while simultaneously curbing the wastage of public funds. The administration has also alleged that the previous regime was marked by widespread institutional corruption and financial irregularities, which hindered the effective delivery of social welfare.
From rural infrastructure projects to schemes such as the 100-day work programme, housing initiatives, Pathashree, and Apanar Para Apanar Samadhan, allegations of misappropriation have been cited as key factors behind unmet development targets.
In line with constitutional practice, the outgoing government had presented a “Vote-on-Account” in the Legislative Assembly earlier this year to cover expenditure for the initial months of the fiscal cycle. As a result, the current administration is now preparing to present a full-fledged budget in July, which will govern state finances from August onward. Work on the budget—aligned with the government’s revised priorities—has already commenced under the Chief Secretary’s directives.
The current approach also draws a contrast with developments in 2011, when the then Union Finance Minister Pranab Mukherjee had advised the incoming state leadership to first formulate a clear budget framework before seeking central assistance. At the time, former Finance Minister Amit Mitra and the Chief Minister had faced criticism for pursuing financial packages without clearly defined fiscal priorities.
Now, in 2026, the Adhikari-led administration is charting a different course. As part of its initial measures, the government has reopened channels for several central schemes that had previously been stalled in the state. Alongside this, it has initiated a broader process of administrative and fiscal reform.
The government’s policy priorities and long-term economic vision are expected to become clearer when its maiden full budget is presented in July—a document that is likely to signal a decisive shift toward infrastructure-led growth and tighter fiscal discipline.
Follow us
