West Bengal to borrow ₹29,000 crore in Q3; year’s market borrowing may hit Rs 1 lakh crore

The state’s outstanding debt was about Rs 6.33 lakh crore in 2023–24, rose to over Rs 7 lakh crore in 2024–25, and is now projected to cross Rs 8 lakh crore in 2025–26, officials added.

The official cited several reasons for the jump in borrowing. Chief among them, he said, is the Centre’s shortfall in releasing funds for flagship schemes such as Pradhan Mantri Awas Yojana–Grameen (PMAY-G). “When the Centre did not release funds under PMAY-G, the state launched its own housing scheme, ‘Banglar Bari’, which has added roughly Rs 24,000 crore to the state’s outlay this year,” he said

The official said that the state government has been pressing for the release of pending Central funds, including Rs 6,900 crore for MGNREGA – the rural employment scheme. “For over two years, the Centre has withheld the payment of wages under the MGNREGA in the state.”

The state has also rolled out the ‘Karmasree’ scheme and made interim payments linked to pending central liabilities. “We have already spent about Rs 3,700 crore on pending wages of some 21 lakh MGNREGA workers,” the official said.

New political programmes have increased expenditure pressures as well. “When the budget was prepared, the ‘Amader Para Amader Samadhan’ project had not been announced,” the official said. “The scheme envisages spending Rs 10 lakh per booth. With more than 80,000 booths in the state, that implies at least Rs 8,000 crore in additional outgo.”

The borrowing plans drew criticism from opposition leaders. CPI(M) central committee member Sujan Chakraborty questioned the priorities of state spending. “We can see the government is spending — but where?” he asked. “Money is not reaching infrastructure. There are about 6.5 lakh vacancies in the state; recruitments are not happening. Basically they are looting public money in different ways and increasing party funds.”

BJP MLA Ashok Lahiri warned that higher borrowing will increase the state’s repayment burden. “The government is not ready to raise fares or increase revenue, so it is relying on loans. But borrowing is not free; it becomes an added fiscal burden,” he said.

Finance minister Chandrima Bhattacharya defended the government’s approach, blaming the Centre for withholding funds. “Everybody knows why we are taking loans, the central government is not releasing our legitimate dues. We are borrowing within limits and have not exceeded them,” she said.

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