The tax revenue of West Bengal is forecasted to increase by 6.20% by March 31, 2027, driven mainly by the State Goods and Services Tax (SGST) and state excise. In the financial year 2026-27, the state’s own tax revenue is set to reach Rs 1,18,668.78 crore, marking a 6.20% rise from the previous year’s revised estimates.
The SGST component is expected to contribute 47.42% to the total state’s own tax revenue collection for the fiscal year 2026-27. Similarly, the state excise component is projected to contribute 20.39% to the total state’s own tax revenue collection during the same period.
By March 31, 2027, the SGST collection is anticipated to increase to Rs 56,279.17 crore from the previous year’s figures. Additionally, the state excise collection is expected to rise to Rs 24,200.74 crore by the end of March 2027.
Economists caution against the over-dependence on state excise for tax revenue generation, noting that it is not a healthy economic indicator for any state. They attribute this reliance to a lack of alternative revenue sources due to insufficient major investments.
In terms of non-tax revenue, the highest contributing component in 2026-27 will be other non-tax revenue at Rs 3,177.24 crore. Furthermore, grants-in-aid from the Union government are projected to see a substantial increase to Rs 47,615.46 crore in the financial year 2026-27.
