Kolkata: The BJP government in the state will present its first budget on Monday, focusing on the eight months of the current fiscal year. A key challenge before the government is to augment its own revenue generation, despite having limited fiscal maneuverability and few options for raising additional resources, official sources said. A high debt burden is another issue, which the state government is likely to address in the budget, sources added.Since the introduction of the Goods and Services Tax (GST) in July 2017, states have had limited scope to enhance their own revenues. In Bengal, the primary sources of tax revenue are State GST (SGST), state excise, sales tax, stamp and registration fees, taxes on vehicles, and taxes and duties on electricity.According to the revised estimates for 2025-26, the state’s own tax revenue stood at slightly over Rs 1.1 lakh crore, with nearly 95% of the collections coming from these six major heads.“The biggest challenge is how to increase revenue without raising taxes. This will require considerable financial management and restructuring. We will see how to increase the sources of revenue generation,” state finance minister Swapan Dasgupta recently said.The revised estimates for 2025-26 show that Bengal’s outstanding debt has crossed Rs 7.6 lakh crore. During the financial year, the government paid Rs 49,854 crore in interest to service the debt. As a result, nearly 44% of the state’s own tax revenue was spent on interest payments alone. The figure rises to Rs 73,854 crore after accounting for Rs 24,000 crore towards repayment of the principal component of market borrowings.Vowing to tackle the economic crisis of Bengal, Dasgupta had said, “The budget will chart a clear roadmap for tackling the state’s economic crisis. We cannot move forward carrying such a massive debt burden.”The BJP government in the state has prioritised infrastructure development as a key component of its economic agenda. The finance minister has indicated that the budget will place significant emphasis on infrastructure creation as a driver of growth and fiscal stability.Additionally, the budget is expected to emphasise on health and education—two top priority areas of the state government, officials said. Several Central schemes on health and education, which were not implemented by the previous Trinamool Congress government in Bengal, have been introduced by the new BJP government and will play a pivotal role in fulfilling the objectives, officials added.According to sources, around Rs 40,000 crore, earmarked for multiple programmes during the previous Trinamool Congress government’s tenure, is set to unlock following the BJP government’s decision to implement various Central schemes in Bengal and can be utilised for accelerating infrastructure development and boosting the economic growth of Bengal.BJP in its Sankalp Patra had promised payment of pending DA to all government employees and pensioners. Officials noted that any announcement regarding DA arrears in the budget would substantially increase the state’s revenue expenditure.
