The West Bengal government is projected to conclude the financial year 2026-27 with an accumulated debt of approximately Rs 8.15 lakh crore, as per the interim budget documents presented by West Bengal’s Minister of State for Finance, Chandrima Bhattacharya. This debt figure marks a 6.5% increase from the previous fiscal year, with the total debt estimated at Rs 8,15,891.35 crore by March 31, 2027.
Comparatively, the total accumulated debt at the end of the financial year 2010-11, under the previous Left Front regime, stood slightly above Rs 1.90 lakh crore. The budget estimates for 2026-27 indicate a total debt repayment amount (principal plus interest) of Rs 97,640.32 crore, significantly higher than the previous year’s figure of Rs 83,148.98 crore as per revised estimates for 2025-26.
With a projected revenue deficit of Rs 21,759.34 crore and a fiscal deficit of Rs 62,423.36 crore as of March 31, 2027, economists highlight the challenges posed by limited state tax revenue generation and escalating revenue expenditures due to various social welfare schemes. The balance between rising revenue expenditure and constrained avenues for state tax revenue generation remains a critical concern, according to economists.
During the previous Left Front regime, the scope for enhancing state tax revenue was restricted. However, the regime managed its limited resources by curbing revenue expenditure, a strategy that economists believe is crucial in the current scenario.
