Kolkata: The Mamata Banerjee-led West Bengal government presented its last full-fledged budget before the 2026 assembly elections, making a significant announcement regarding Dearness Allowance (DA) for state government employees. The budget, presented by Minister of State for Finance Chandrima Bhattacharya, outlined key financial allocations and policy decisions, leaving many citizens with mixed reactions.
As anticipated, the budget confirmed a 4% hike in DA, bringing the total DA for state government employees to 18%. This increment, effective from April 1, 2025, comes as a relief for thousands of government workers who had been demanding an increase for months. The move is seen as a strategic pre-election gesture, aimed at appeasing state employees ahead of the 2026 assembly polls.
However, in a surprising decision, the government did not increase the allocation for the Lakshmi Bhandar scheme, a financial assistance initiative for women. Speculation was rife that the Mamata government might enhance the fund, especially after the recent electoral developments in Delhi. Contrary to expectations, the budget maintained the existing structure of the scheme, leaving many beneficiaries disappointed.
In addition to the DA hike, the budget also introduced several key allocations aimed at various welfare projects. A sum of Rs 200 crore has been earmarked for providing mobile phones to ASHA and Anganwadi workers, aimed at enhancing their efficiency in delivering health and child care services. Furthermore, under the Banglar Bari project, an additional Rs 9,600 crore has been allocated to construct houses for 16 lakh more beneficiaries, continuing the government’s push for affordable housing.
Another notable announcement was the extension of the Agricultural Income Tax Exemption Scheme for the tea industry. This exemption, which was set to expire, has now been extended until March 31, 2026. The decision is expected to provide much-needed relief to the state’s tea industry, which has been facing economic challenges.
With a mix of benefits and disappointments, the Bengal Budget 2025 sets the stage for the upcoming elections. While the DA hike is a welcome move for government employees, the stagnation of the Lakshmi Bhandar scheme may influence voter sentiments. The political implications of these budgetary decisions will unfold in the months leading up to the 2026 assembly polls.
