West Bengal State Budget 2007-08 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for West Bengal FY 2007-08
West Bengal State Budget 2007-08 Budget at a Glance
Total Receipts
Rs 29,200 crore
+13.2%
Total Expenditure
Rs 48,000 crore
+11.6%
Fiscal Deficit
3.9%
Rs 12,500 crore
Capital Expenditure
Rs 6,500 crore
+12.1%
Tax Revenue
Rs 16,800 crore
+14.3%
Interest Payments
Rs 10,900 crore
23% of expenditure
West Bengal Revenue Receipts 2007-08
Own tax revenue vs non-tax revenue breakdown
West Bengal Expenditure Breakdown 2007-08
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP — West Bengal 2007-08
The fiscal deficit for West Bengal in 2007-08 is 3.9% of GSDP (Rs 12,500 crore), reflecting the state's borrowing needs to fund development programmes.
States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. West Bengal's deficit is above this threshold, driven by higher capital spending needs.
Interest payments at Rs 10,900 crore consume 22.7% of total expenditure.
West Bengal State Budget 2007-08 — Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 50,200 crore | 100% |
| 1. Revenue Receipts | Rs 29,200 crore | 58.2% |
| a. Own Tax Revenue | Rs 16,800 crore | 33.5% |
| b. Non-Tax Revenue | Rs 2,700 crore | 5.4% |
| B. Total Expenditure | Rs 48,000 crore | 100% |
| 1. Revenue Expenditure | Rs 41,500 crore | 86.5% |
| 2. Capital Expenditure | Rs 6,500 crore | 13.5% |
| of which: Interest Payments | Rs 10,900 crore | 22.7% |
| C. Fiscal Deficit | Rs 12,500 crore | 3.9% of GSDP |
Source: West Bengal State Budget Documents via PRS India. All figures in Indian Rupees.
West Bengal Budget 2007-08 Analysis & Highlights
Key Highlights
- West Bengal's total expenditure in 2007-08 rose to approximately Rs 52,600 crore amid escalating political tensions over land acquisition at Singur and Nandigram.
- Revenue receipts reached Rs 37,200 crore, a 11% increase driven by VAT buoyancy and growing central transfers under the booming national economy.
- The Nandigram violence of March 2007 cast a long shadow over governance, with Rs 300 crore allocated for relief and rehabilitation in affected areas of East Midnapore.
- Education allocation increased to Rs 10,200 crore with SSA covering 9 million primary school children and mid-day meals reaching 12 million students.
- Agriculture spending of Rs 4,600 crore included farm debt waiver support of Rs 800 crore following the central government's national waiver announcement.
- Industrial investment commitments worth Rs 15,000 crore were secured at the Bengal Global Business Summit precursor events despite the Singur controversy.
- Health expenditure of Rs 3,900 crore supported NRHM expansion with 12,000 ASHA workers deployed across 341 blocks.
- NREGA coverage expanded to all 19 districts generating 80 million person-days of employment at a combined expenditure of Rs 2,400 crore.
- Interest payments of Rs 9,100 crore consumed 24.5% of revenue receipts as the state managed its massive Rs 1,22,000 crore debt burden.
- Power sector received Rs 3,600 crore with 500 MW capacity addition at Sagardighi Phase II targeted to reduce industrial load-shedding.
- The Kolkata East-West Metro tunneling beneath the Hooghly River received Rs 1,200 crore as construction progressed on schedule.
- Revenue deficit narrowed further to Rs 2,200 crore reflecting improved fiscal management despite political turbulence.
- IT sector in Salt Lake Sector V and Rajarhat grew 25% with Rs 800 crore in new investment from TCS, Cognizant, and Wipro.
- Social welfare spending of Rs 2,600 crore included Rs 400 crore for Scheduled Caste welfare covering 23% of the state population.
Compare West Bengal Budget — Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 |
|---|---|---|---|---|---|
| Total Expenditure | — | — | — | Rs 43,000 crore | Rs 48,000 crore |
| Revenue Receipts | — | — | — | Rs 25,800 crore | Rs 29,200 crore |
| Capital Expenditure | — | — | — | Rs 5,800 crore | Rs 6,500 crore |
| Fiscal Deficit (% GSDP) | — | — | — | 4.2% | 3.9% |
| Own Tax Revenue | — | — | — | Rs 14,700 crore | Rs 16,800 crore |
Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding West Bengal State Budget 2007-08
The West Bengal state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.
West Bengal Revenue Sources
State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).
Fiscal Deficit and State Borrowing
Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.
Explore More
Compare West Bengal with other states
Side-by-side comparison of fiscal metrics across Indian states