West Bengal Tables ₹4.06 Lakh Crore Budget Ahead of Assembly Elections

The West Bengal government tabled a vote‑on‑account budget of ₹4.06 lakh crore in the Assembly ahead of state elections scheduled for April this year. The interim budget outlines expenditure and revenue expectations for the next fiscal while allowing essential spending to continue until a full budget is presented post‑elections.

Finance Minister Chandrima Bhattacharya announced that total expenditure for 2026‑27 is pegged at ₹3.96 lakh crore, reflecting a 14.2% rise over the revised estimates of 2025‑26. The state also projects a significant reduction in its revenue deficit in the upcoming fiscal year.

Key Fiscal Estimates For 2026‑27

The government has pegged total expenditure for the next fiscal at ₹3.96 lakh crore, marking a 14.2% increase over the revised 2025‑26 figures. This rise demonstrates the state’s commitment to funding ongoing programmes while managing election‑year financial pressures.

The interim budget maintains continuity in welfare and developmental spending. The vote‑on‑account allows necessary funds to be allocated until the incoming government presents a full budget. The estimates reflect a balance between welfare commitments and fiscal management.

Revenue Deficit and Borrowing Outlook

The state expects its revenue deficit to decline sharply to ₹21,759.34 crore in 2026‑27 from a revised ₹41,164.05 crore in the current fiscal. This marks a notable improvement compared to the initial estimate of ₹35,314.95 crore for 2025‑26.

The projection indicates efforts to stabilise revenue streams while controlling expenditure growth. Market borrowings for 2026‑27 are estimated at ₹80,444.55 crore. This borrowing level highlights the state's reliance on debt to finance development and welfare commitments.

Sectoral Allocations and Welfare Spending

Social welfare schemes received the largest share of allocations at ₹1.80 lakh crore, accounting for nearly 46% of the total expenditure. This emphasises the government’s continued focus on inclusive development.

General services were allocated ₹94,389.29 crore, supporting administrative and governance‑related functions. Economic services received ₹73,773.66 crore, targeting sectors such as infrastructure, agriculture and industry.

Tax Revenues and GST Contributions

The state’s own tax revenue is projected to rise to ₹1.18 lakh crore in 2026‑27, compared to the revised ₹1.11 lakh crore for 2025‑26. State GST remains the single largest contributor at ₹56,279.17 crore for FY 2027. State excise revenue has been projected at ₹24,200.74 crore, demonstrating its role as a key fiscal component.

Sales tax collections are pegged at ₹13,976.07 crore for the upcoming fiscal. These revenue expectations suggest steady tax mobilisation despite broader economic uncertainties.

Read More: What Gets Cheaper and More Expensive After Budget 2026?

Conclusion

West Bengal’s ₹4.06 lakh crore budget combines welfare-focused expenditure with an emphasis on fiscal consolidation ahead of elections. The state government has projected a notable improvement in the revenue deficit.

At the same time, allocations for key social and economic sectors remain substantial. Higher tax revenue estimates and continued capital expenditure are intended to maintain momentum until a full budget is presented by the next administration.

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