Amid row with Centre over PMAY, Mamata govt goes big on housing scheme before polls

Expecting BJP’s “vikas” line of attack, TMC govt allots significant funds for rural connectivity, river erosion control, and agrarian support initiatives.

5 min readKolkataUpdated: Feb 13, 2025 11:04 PM IST

mamata banerjee, kolkata, housing scheme, political pulse, indian express

CM Mamata Banerjee announced the Banglar Bari housing scheme in December last year. (Source: FB)

Facing growing revenue and fiscal deficits and a mounting debt, the Mamata Banerjee government diverted some of its spending on social welfare from its flagship Lakshmir Bhandar scheme to one for building rural houses, in the Budget tabled on Wednesday.

The Chief Minister, who has accused the Centre of not releasing “a single paisa” for the PM Awas Yojana in Bengal, had announced the Banglar Bari housing scheme in December last year.

Wednesday’s Budget was the Trinamool Congress’s last full-fledged one before the Assembly elections scheduled next year, and the expectation was that the Mamata government would go big on its popular schemes such as Lakshmir Bhandar to provide financial assistance to women from economically weaker sections and not in government job, and Kanyashree that provides financial assistance to girls from low-income families.

A senior Finance Department official admitted that the mounting debt and deficit were a factor. According to the state government’s financial statement, the revenue deficit for the financial year 2025-26 is estimated at Rs 35,314 crore, the fiscal deficit at Rs 73,177 crore and the state’s outstanding debt at Rs 7,71,670 crore.

The official said, “The debt was Rs 6,33,960 crore in the 2023-24 financial year, which increased to more than Rs 7 lakh crore in 2024-25, with the estimation of the 2025-26 financial year showing it may touch Rs 8 lakh crore… There was a need to manage and rein in the debt amount and fiscal deficit.”

The official pointed out that the allocation of Lakshmir Bhandar had already been doubled last year to Rs 1,000 per month, with the government spending Rs 50,000 crore on it annually.

This preceded the Lok Sabha elections, in which the TMC managed to not just fight off the BJP in West Bengal but also brought down its 2019 tally in the state.

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The official said the allocation for Lakshmir Bhandar had been kept the same, so as to divert more funds for Banglar Bari. “Almost Rs 10,000 crore would be needed for that… So, the government decided to only increase 4% DA and money allocated to the Ghatal Master Plan and Nadi-Bandhan (projects to dredge river beds and strengthen embankments of major rivers in the state) and other such projects.”

The projects for which significant funds have been allotted include rural connectivity, river erosion control, and agrarian support initiatives. A major highlight was the Rs 1,500 crore allocation for improvement of rural roads across the state.

Under the ‘Banglar Bari’ housing project, the state plans to construct 16 lakh new houses in the upcoming financial year, with Rs 9,600 crore allocated for this.

Apart from blunting the expected BJP attack over PMAY implementation in the state, the TMC Budget allocations hope to counter the Modi government on the infrastructure front. The BJP holds up the big projects under the Modi government as proof of its commitment to “vikas”.

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At a press conference after presenting the budget, CM Mamata Banerjee said the Lakshmir Bhandar scheme was such a success that others are now “replicating” the model. “We already allocate crores for Lakshmir Bhandar and, last year, increased the amount… We will further increase the amount when we are able to arrange the money.”

In her Budget speech, Finance Minister Chandrima Bhattacharya underlined the “number of schemes” the Mamata government had undertaken for empowering women, citing Lakshmir Bhandar, Kanyashree Scheme and Rupashree Scheme (a one-time grant of Rs 25,000 to families with daughters who are getting married). “These schemes have touched the lives of women in West Bengal,” Bhattacharya said.

She also stressed that the state’s economic growth rate, of 6.87%, exceeded the country’s overall rate of 6.37%. “Job creation lies at the core of our developmental model,” Bhattacharya said.

Attacking the Budget, BJP leader Samik Bhattacharya said, “The proposals show the poor financial condition of our state. The government has no money. Mamata Banerjee has kept a small amount of money so that in next year’s vote on account (in lieu of a full-fledged Budget), she can announce some populist schemes just before the Assembly elections. But, let me tell you, this is the last full-fledged Budget of the TMC government. Next full-fledged Budget will be tabled by us.”

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CPI(M) leader Sujan Chakraborty said, “Mamata Banerjee knew that people had caught on to her tricks. They know that these projects are difficult to implement as the state has no money. So, she is searching for other ways now to fool the people.”

Atri Mitra

Atri Mitra is a highly accomplished Special Correspondent for The Indian Express, bringing over 20 years of experience to his reporting. His work is characterized by deep regional knowledge and a focus on critical administrative and political developments, establishing strong Expertise and Authority in his domain. Experience Current Role: Special Correspondent, The Indian Express. Decades of Experience: Over two decades of extensive reporting experience, primarily covering administration and political news. Geographical Focus: Holds significant reporting experience from West Bengal, Bihar, and the North-East, providing a comprehensive understanding of the socio-political landscape in these regions. Key Coverage: Has dedicated more than ten years to covering administration and political news, with a keen focus on political developments in West Bengal. Electoral Reporting: Demonstrated a commitment to crucial political moments, having covered the 2009 Lok Sabha election and 2010 assembly elections during his time at Anandabazar Patrika, and the 2019 Bihar Lok Sabha election while working with News18-Bangla. Career Foundation: Began his career at the leading vernacular daily Anandabazar Patrika, where he worked for more than fifteen years, including a three-year stint as the Bihar correspondent. Education Advanced Degree: Holds a Master's degree in Economics from Rabindrabharati University, providing an analytical framework for his political and administrative reporting. Undergraduate Education: Holds a Bachelor's degree from Calcutta University. Prestigious Alumni: His educational background includes attending esteemed institutions: he is an alumnus of St. Xavier's, Kolkata and Ramakrishna Mission Asrama, Narendrapur. Atri Mitra's decades of dedicated reporting, substantial focus on political and administrative beats, and solid academic credentials make him a trusted and authoritative source for news and analysis from Eastern and North-Eastern India. ... Read More

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