West Bengal State Budget 2026-27 Analysis
Budget EstimateTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for West Bengal FY 2026-27
West Bengal State Budget 2026-27 Budget at a Glance
Total Receipts
Rs 3.2 lakh crore
+30.9%
Total Expenditure
Rs 3.84 lakh crore
+22.8%
Fiscal Deficit
2.9%
Rs 62,421 crore
Capital Expenditure
Rs 41,699 crore
+57.7%
Tax Revenue
Rs 1.31 lakh crore
+13.6%
Interest Payments
Rs 53,034 crore
14% of expenditure
West Bengal Revenue Receipts 2026-27
Own tax revenue vs non-tax revenue breakdown
West Bengal Expenditure Breakdown 2026-27
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Top 10 Departments by Allocation
Fiscal Deficit as % of GSDP โ West Bengal 2026-27
The fiscal deficit for West Bengal in 2026-27 is 2.9% of GSDP (Rs 62,421 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 is maintaining fiscal discipline close to the recommended limit.
Interest payments at Rs 53,034 crore consume 13.8% of total expenditure.
West Bengal State Budget 2026-27 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 3.22 lakh crore | 100% |
| 1. Revenue Receipts | Rs 3.2 lakh crore | 99.6% |
| a. Own Tax Revenue | Rs 1.31 lakh crore | 40.6% |
| b. Non-Tax Revenue | Rs 8,303 crore | 2.6% |
| B. Total Expenditure | Rs 3.84 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 3.42 lakh crore | 89.1% |
| 2. Capital Expenditure | Rs 41,699 crore | 10.9% |
| of which: Interest Payments | Rs 53,034 crore | 13.8% |
| C. Fiscal Deficit | Rs 62,421 crore | 2.9% of GSDP |
Source: West Bengal State Budget Documents via PRS India. All figures in Indian Rupees.
West Bengal Department-wise Expenditure 2026-27
Top departments by allocation in West Bengal for 2026-27
| Department โ | Revenue โ | Capital โ | Total โ | Share |
|---|---|---|---|---|
1. Social Welfare & Nutrition | Rs 59,624 crore | Rs 4,270 crore | Rs 63,894 crore | 16.6% |
2. Education, Sports, Arts & Culture | Rs 51,136 crore | Rs 3,662 crore | Rs 54,798 crore | 14.3% |
3. Health & Family Welfare | Rs 23,824 crore | Rs 1,706 crore | Rs 25,530 crore | 6.6% |
4. Rural Development | Rs 22,914 crore | Rs 1,641 crore | Rs 24,555 crore | 6.4% |
5. Agriculture & Allied Activities | Rs 18,570 crore | Rs 1,330 crore | Rs 19,900 crore | 5.2% |
6. Transport | Rs 6,474 crore | Rs 9,413 crore | Rs 15,887 crore | 4.1% |
7. Water Supply & Sanitation | Rs 6,699 crore | Rs 8,703 crore | Rs 15,402 crore | 4.0% |
8. Police | Rs 13,324 crore | Rs 954 crore | Rs 14,278 crore | 3.7% |
9. Housing | Rs 12,618 crore | Rs 904 crore | Rs 13,522 crore | 3.5% |
10. Urban Development | Rs 11,262 crore | Rs 806 crore | Rs 12,068 crore | 3.1% |
West Bengal Budget 2026-27 Analysis & Highlights
Key Highlights
- Total expenditure (net of debt repayment) is budgeted at Rs 3,84,169 crore for 2026-27, up 23% over the 2025-26 revised estimate of Rs 3,12,897 crore; the gross budget including Rs 54,607 crore of debt repayment stands at Rs 4,38,775 crore.
- Fiscal deficit is targeted at Rs 62,421 crore, or 2.9% of GSDP โ West Bengal's first budget inside the Sixteenth Finance Commission's 3% ceiling for 2026-31, down from 3.4% in the 2025-26 revised estimate.
- Revenue deficit nearly halves to Rs 21,984 crore (1.0% of GSDP) from Rs 41,164 crore (2.1% of GSDP) in the 2025-26 revised estimates.
- Annapurna Bhandar โ Rs 3,000 per month to eligible women, replacing the earlier Lakshmir Bhandar transfer โ is budgeted at Rs 36,000 crore, equal to 11% of the state's revenue receipts.
- Revenue receipts are projected at Rs 3,20,485 crore, up 31% over the revised estimate, with grants-in-aid from the Centre more than tripling to Rs 71,393 crore from Rs 22,069 crore in 2025-26 (RE).
- Own tax revenue is budgeted at Rs 1,30,670 crore โ 6.1% of GSDP, up from 5.6% โ led by State GST at Rs 61,535 crore (+14%) and state excise at Rs 24,922 crore (+12%).
- Capital outlay rises 55% to Rs 40,930 crore (about 1.9% of GSDP), with roads and bridges (Rs 9,413 crore) and water supply capital works (Rs 8,703 crore) the two largest capital lines.
- Committed expenditure of Rs 1,62,190 crore โ salaries Rs 82,304 crore, interest Rs 53,034 crore, pensions Rs 26,852 crore โ absorbs 51% of revenue receipts.
- Outstanding liabilities are estimated at Rs 8,15,891 crore, or 38% of GSDP, among the highest debt ratios of any major Indian state.
- Rural development jumps 132% to Rs 24,555 crore (including Rs 11,000 crore for VB G RAM G), and water supply & sanitation rises 154% to Rs 15,402 crore.
- Centrally sponsored schemes return at scale: PMAY-Gramin Rs 13,000 crore, Ayushman Bharat Rs 3,100 crore and Samagra Shiksha Rs 3,000 crore are budgeted for 2026-27.
- GSDP is projected at Rs 21,48,244 crore for 2026-27 (8% nominal growth); education receives 14.3% of expenditure at Rs 54,798 crore, up 51%.
- Debt servicing of Rs 1,07,641 crore (interest Rs 53,034 crore plus repayment Rs 54,607 crore) exceeds gross borrowings of Rs 1,05,388 crore; the profession tax exemption threshold doubles to Rs 20,000 per month for salaried earners.
Compare West Bengal Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2022-23 | 2023-24 | 2024-25 | 2025-26 | 2026-27 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 3.13 lakh crore | Rs 3.84 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 2.45 lakh crore | Rs 3.2 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 26,439 crore | Rs 41,699 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.4% | 2.9% |
| Own Tax Revenue | โ | โ | โ | Rs 1.15 lakh crore | Rs 1.31 lakh crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding West Bengal State Budget 2026-27
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