Bengal has budgeted for a course correction in 2025-26 following a disparity in the growth rates of revenue expenditure and capital expenditure in 2024-25.

Higher spending on social services, which comprises various social welfare schemes, had cranked up Bengal’s revenue expenditure by 19.86 per cent in 2024-25 from 2023-24.

Capital expenditure, which includes spends on roads, bridges and flyovers, had registered a paltry 1.46 per cent growth in 2024-25. Capital expenditure has a higher multiplier effect on economic growth.

However, the budget estimates for 2025-26 show a rectification with a 19.39 per cent rise in capital expenditure and an 11.26 per cent rise in revenue expenditure compared with the revised estimates of 2024-25, even as 52 per cent of revenue expenditure in 2025-26 will be geared towards social services. Capital expenditure during 2024-25 was short of the initial estimate of ₹67,913.26 crore.

Bengal’s revenue receipt in 2024-25 has grown 13.64 per cent compared with 2023-24, while market loans have grown at a higher pace of 14.43 per cent during the year. The state has budgeted a 16.9 per cent rise in revenue receipt in 2025-26 with market loans reaching a high of ₹81,972.33 crore, a growth of 2.46 per cent over 2024-25. The loan repayment obligations for 2025-26 are estimated at ₹81,510.50 crore. The outstanding debt for 2025-26 is estimated at ₹7,71,670.41 crore, up 9.21 per cent over 2024-25.

The state has recorded a fiscal deficit of 4.02 per cent (of GSDP) compared with 3.27 per cent in 2023-24 and it is estimated at 3.6 per cent in 2025-26.

Bengal’s finance minister Chandrima Bhattacharya pointed out that the state’s economic growth has outpaced national growth. “GSDP at constant prices has increased 6.8 per cent in 2024-25 (first advanced estimate), which is higher than the growth rate of India (6.37 per cent).”

Industry welcomed the higher capital spend plan by the state. “Infrastructure creation has received a major boost with ₹500 crore budgetary allocation for the Gangasagar Setu,” said Rajeev Singh, director-general, ICC.

“The government’s focus on infrastructure expansion and digital transformation demonstrates a clear vision for socioeconomic progress,” said N. G. Khaitan, president, Bharat Chamber of Commerce.

“Focus on improving rural connectivity, managing river erosion, and enhancing agricultural support are welcome initiatives,” said Sanjay Budhia, MD, Patton Group.