Bengal presents Rs 3.89 lakh crore budget; DA enhanced, housing scheme gets higher allocation

Kolkata: In a key development ahead of the 2026 Assembly elections, West Bengal’s Minister of State for Finance, Chandrima Bhattacharya, presented a robust Rs 3,89,194.09 crore budget for the financial year 2025-26.

The budget proposals were centered around several important areas, including a four-percentage-point increase in dearness allowance (DA) for state government employees, enhanced allocation for affordable housing under the state’s ‘Banglar Bari’ scheme, and increased funding for health, education, and road infrastructure.

Key Highlights of Bengal’s Budget for 2025-26

1. Increase in Dearness Allowance (DA):
   The budget included a significant increase in the dearness allowance for state government employees, raising it from 14% to 18%, effective from April 1, 2025. While this will provide some relief, state employees have expressed concerns that the gap with the central government’s DA remains considerable, with central employees receiving a DA of 53%.
2. Affordable Housing – Banglar Bari Scheme:
   A major boost was given to the affordable housing sector with an additional Rs 9,600 crore allocated to the ‘Banglar Bari’ initiative. This scheme, aimed at constructing 16 lakh additional houses for the economically weaker sections, is expected to improve housing access for the underprivileged.
3. Road Infrastructure Boost:
   An additional Rs 1,500 crore has been allocated for the expansion and improvement of road infrastructure under the ‘Pathashree’ scheme, enhancing connectivity across the state.
4. Healthcare & Education Allocations:
   West Bengal’s commitment to improving its public sectors continued with increased allocations for health and education. A total of Rs 21,355 crore has been allocated for the health sector, while school education will receive Rs 41,153 crore in the 2025-26 fiscal year. Furthermore, higher education has been earmarked Rs 6,593.58 crore.
5. Smartphones for ASHA Workers:
   In a move to support healthcare workers, the state government will provide smartphones to 70,000 accredited social health activists (ASHA), enhancing their ability to connect and deliver services in rural areas.
6. River Protection – Nadi Bandhan Scheme:
   A new scheme named ‘Nadi Bandhan’ has been introduced to protect the river banks in the state. An allocation of Rs 2,000 crore has been set aside for this project, aimed at preventing soil erosion and protecting the environment.
7. Bridge Construction at Sagar Islands:
   Rs 500 crore has been allocated for the construction of a new bridge at Sagar Islands, which is crucial for the Gangasagar Mela and other regional events.

Budget’s Focus on Development and Welfare

The budget places a strong emphasis on development, welfare, and infrastructure improvements. Despite not proposing an increase in the Lakshmir Bhandar scheme (a cash transfer program for women), the overall budget has been well-received for its targeted allocations, especially in housing and road infrastructure.

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This comprehensive approach aims to provide much-needed relief and enhance the living standards of West Bengal’s residents while laying the foundation for future growth and development.