The Bengal government might face a roadblock in carrying out several welfare schemes ahead of the Assembly polls after the Supreme Court asked the state administration to clear 25 per cent dearness allowance (DA) due to employees between 2009 and 2019.

“A rough estimate by the finance department suggests that the state government will have to spend nearly ₹10,000 crore to clear 25 per cent of the due DA of the employees.... As this expenditure was unexpected, it will definitely leave an impact on the state government’s welfare schemes, for which ₹66,300 crore has been allocated in the 2025-26 financial year,” a bureaucrat said.

Sources in the administration said the scheme that could be the worst hit was Banglar Bari, under which the government promised to give funds to 28 lakh people living in rural areas to build houses. The Banglar Bari scheme was launched after the Centre stopped the release of funds under the Pradhan Mantri Awas Yojana (PMAY) since 2022, alleging irregularities in its implementation in Bengal.

The state government had disbursed the first instalment of ₹60,000 each to 12 lakh beneficiaries of the Banglar Bari scheme in December last year. The second tranche of ₹60,000 to each of these 12 lakh beneficiaries was supposed to be released in the ongoing financial year. For this, the state government would have to spend ₹7,200 crore.

Moreover, as the Assembly polls are due next year, the government had plans to give the first instalment of ₹60,000 each to another 16 lakh beneficiaries. For this, the government was supposed to spend ₹9,600 crore in the ongoingfinancial year.

“Now, as the state has to shoulder an additional burden of ₹11,000 crore, the housing scheme could be the worst hit... In all likelihood, the second instalment for the 12 lakh beneficiaries would be delayed. Furthermore, the plan to give the first instalment to 16 lakh beneficiaries could also be altered,” saidan official.

The government could also hit a hurdle to enhance the benefits under Lakshmir Bhandar, under which 1.2 crore women between 25 and 60 years of age get ₹1,000 and ₹1,200 (for SC and ST women) a month.

“There was also a plan to enhance the benefit ahead of the polls, as this particular scheme has given dividends to the ruling party in consecutive elections. But it appears that the government would have to think twice as it has already spent more than ₹26,000 crore under the scheme,” said an official.

The government’s plans to spend handsomely on rural development schemes ahead of the polls could also be hurt since the state would have to give 25 per cent of the due DA to its employees.

“The state government had allotted ₹18,300 crore for rural development schemes in its budget for the 2025-26 financial year, which was 44 per cent more than the previous year. This huge allotment was done keeping next year’s polls in mind, as the rural people hold the key to electoral success. Now, it remains to be seen whether the state would be able to spend so much on rural development,” said a source.

A section of the officials said the situation could be tighter if the Supreme Court’s final verdict goes against the state government in August, when the case would beheard again.

“If the apex court rules in favour of the employees, the state would be forced to spend another ₹33,000 crore to give the remaining DA arrears to the employees. In that case, the state would face real trouble running the welfare schemes, and it would be a serious blow to the ruling party ahead of the polls,” said a bureaucrat.