In its Budget proposals for 2023-24, funds-starved West Bengal on Wednesday made more allocations for social sector schemes – both existing and new ones – even while announcing measures to strengthen infrastructure and the State’s overall investment scenario.
It has launched the ‘Rastashree’ project for strengthening and improving the connectivity of existing roads. A total of 11,500 km of rural roads will be taken up under the project, which will also take up construction of new roads.
The total allocation for the scheme is close to Rs 3,000 crore, the West Bengal Minister of State for Finance (independent charge), Chandrima Bhattacharya, said while presenting the Rs 3.39-lakh crore Bengal budget for 2023-24 in the assembly on Wednesday.
The state government has also introduced a ‘Matsyajeebi Bandhu (death benefit) scheme’ to support the dependent family members of fishermen who have met an untimely death. A one-time grant of Rs 2 lakh will be provided to the dependent family members on the death of a registered fisherman, either due to natural causes or by accident. It has allocated Rs 30 crore for the scheme.
On the infrastructure side, the upcoming West Bengal Logistics Policy, 2023, will streamline the logistics sector and help the government secure a strategic position in the global supply chain and transform the state into a logistics hub, Bhattacharya said. West Bengal’s unique location connecting the eight northeastern states, Nepal, Bhutan and Bangladesh and the ASEAN nations, makes it an ideal location for large-scale logistics hubs.
The development of an industrial and economic corridor with three branches, namely Dankuni-Haldia, Dankuni-Raghunathpur and Dankuni-Kalyani will provide better connectivity to surrounding industrial zones and complimentary infrastructure such as a logistics park, townships, along with other urban amenities. “This industrial and economic corridor will contribute to the overall economic and social development of the region, and create employment opportunities for about one lakh people,” she said.
The West Bengal government has announced a 3 per cent hike in dearness allowance for state government employees starting March this year. However, state government employees, who have been staging protests demanding that the government pay them DA (dearness allowance) at par with the rate for Central Government employees, refused to accept the proposal saying that it was too low.
The government has also proposed to extend the 2 per cent rebate on stamp duty and 10 per cent rebate on circle rate of land/ property, which was valid till March 31, 2023, by another six months up to September 30, 2023.
Generating employment
Bhattacharya also announced the ‘Bhavishyat credit card’ scheme, under which youth will be provided loans to start businesses.
“Under this scheme two lakh youth in the age group of 18-45 years will be provided financial assistance as loans up to Rs 5 lakh through banks for setting up micro-enterprises and to create employment opportunities. The state government will provide subsidies in the form of margin money contribution up to 10 per cent of the project cost, with a maximum cap of Rs 25,000 and guarantee coverage of 15 per cent,” she said.
The state government has earmarked close to Rs 350 crore for this scheme.
According to West Bengal Chief Minister Mamata Banerjee, this is “an employment oriented budget” and despite the funds crunch confronting the state government, lakhs of people are likely to get employment due to the schemes announced.
West Bengal growth higher than national average
Inspite of the mpact of the Covid-19 pandemic and various natural calamities in the last two years, West Bengal has maintained steady growth. While the Indian economy is expected to grow at 6.95 per cent in the current financial year 2022-23 (1st AE), the State’s economy is expected to grow at a higher rate of 8.41 per cent in the same period, Bhattacharya said in her budget speech.
Revenue has shownsteady growth over the last few years. Tax revenue comes from GST, sales tax, stamp duty, excise, land revenue and motor vehicle tax. With regard to GST, the State’s zero tolerance towards return default has resulted in the return filing percentage increasing from 70 per cent to 95 per cent during the financial year, much higher than national average.
“Our intelligence-based data analysis has plugged revenue leakages. As a result, GST revenue grew at 23 per cent in the last financial year and cumulative growth up to January 2023 this year is at 24.46 per cent – much higher than the national average,” she said.
However, theleader of the Opposition, Suvendu Adhikari, tweeted that the West Bengal 2023-24 budget is a futile exercise, trying to plug too many holes. “The budget will neither fulfil the aspirations of common people nor will it address unemployment,” he tweeted.