West Bengal Budget 2026: TMC bets big on welfare, DA hikes ahead of Assembly polls

As Assembly elections draw close, the West Bengal government tabled its Budget on Thursday proposing an increase in their pilot Lakshmir Bhandar Scheme for more than 2.23 crore women in rural households.

The welfare scheme initiated before the 2021 Assembly elections offered Rs 500 to each woman, which later went up to Rs 1,000 for the general class and Rs 1,200 for the reserved class. The Budget now proposes a Rs 500 increase from April 1, 2026, making it Rs 1,500 for women in the general category and Rs 1,700 for the reserved class.

“Once elections are declared we cannot announce schemes, what is the use? We are announcing it now,” said Chief Minister Mamata Banerjee while addressing the media after the Budget was tabled by state Finance Minister Chandrima Bhattacharya.

Leader of Opposition Suvendu Adhikari called the move pointless, as no welfare schemes and incentives could be announced for people once elections are declared and the Model Code of Conduct (MCC) comes into force.

“The rule of the Model Code of Conduct states that the benefit amount does not increase. It is not possible for the schemes to be implemented from April. It is a four-month interim plan for vote on account or to show recurring expenditure of like for various states,” he said.    

The state government also announced the Yuva Sathi Scheme which proposes a Rs 1,500 monthly allowance for unemployed youths aged 21-40 for a period of five years until they get a job. The BJP however called this an eyewash, as this scheme was initiated back in 2013.

“They have revamped the Yuva Shree Scheme and named it Yuva Sathi with Rs 1,500 per month allowance for unemployed youth. Under the Chief Minister’s leadership, the scheme was announced by Amit Mitra (former state finance minister) for unemployed youth. It is complete jugglery and lies with unemployed youth,” Adhikari noted.     

A 4 per cent hike in Dearness Allowance (DA) was announced for government employees, taking it from 14 per cent to 18 per cent.

Meanwhile, the Supreme Court (SC) has also directed the West Bengal government to immediately clear 25 per cent of outstanding DA arrears with a payment schedule determined by March 6 as well as the first instalment of the remaining 75 per cent by March 31. This move will benefit around 12 lakh current and previous government employees.

The apex court also appointed a four-member committee headed by former SC Justice Indu Malhotra to oversee the implementation of the judgement. The court also asked for a comprehensive compliance report by April 15, the next date of hearing.

Notably, despite the DA increase announced by the state government in its budget, there is a 40 per cent gap between DA received by state and central government employees.

“They (state government) should not have announced the portion of 4 per cent DA after getting the Supreme Court order. Where the 7th Pay Commission is being formed, they are speaking about the 6th Pay Commission. This budget has no merit,” added Adhikari.

Mamata responded to the SC order saying that the state was yet to receive it.

“Let us study it. Talk to lawyers. They have formed a committee for the next course of action. We will follow what the committee says," she said.

The ruling Trinamool Congress (TMC) is confident of coming back to power for a fourth term. The smooth implementation of proposed schemes and budget plans based on the response of beneficiaries of welfare schemes has turned many rural voters in favour of the party over the years.

This will prove tough for the BJP to combat, despite promises of industry and employment if the saffron party comes to power.