National News
How West Bengal put brakes on growing fiscal deficit
With only a few days to go before the state budget, it would be interesting to watch how state financial advisor Amit Mitra put brakes on the growing fiscal deficit in the state.
Experts are of the opinion that the state financial condition was showing signs of recovery despite the outstanding liabilities but the financial burden caused by the social schemes announced by the state is having a negative impact on the financial health of the state.
The revenue deficit has been pegged at Rs 26,755.25 crore which is more than three per cent of the Gross State Domestic Product (GSDP) limit. Going by the past trend, the figure is likely to increase further. The fiscal deficit shot up from Rs 52,350.01 crore in 2020-21 to Rs 60,863.96 crore in 2021-22. The upswing in deficit is expected, considering that both the state’s tax and non-tax revenues have plummeted during the pandemic.
The state’s own tax revenue dropped from Rs 60,669.37 crore in 2019-20 to Rs 59,886.59 crore in 2020-21 and its share in central taxes plunged from Rs 48,048.40 crore to Rs 44,737.01 crore during the same period. The period also witnessed a fall in non-tax revenue from Rs 3,212.90 crore to Rs 2,466.31 crore.
Given the pandemic-induced fall, the budget estimate of Rs 50,070.29 crore as state’s share in central taxes, Rs 75,415.74 crore as its own tax revenue and Rs 4,611.72 as its non-tax revenue, appear unrealistic, which means the current fiscal may end with a higher revenue deficit as well as an increased fiscal deficit.
With an estimated fiscal deficit of 4.03 per cent of its GSDP, West Bengal is among those few states that have crossed the three per cent threshold limit. In 2020-21, the percentage was 3.86 as against 2.94 per cent in 2019-20. Not only that, the GSDP growth rate at 2011-12 constant prices went up from 4.17 per cent in 2012-13 to 6.13 per cent in 2015-16, 7.2 per cent in 2016-17, and 6.41 per cent in 2018-19 but again plunged to 5.6 per cent in 20-21. However, it still consistently remained below the national average.
Interestingly enough, Bengal’s debt-GSDP ratio stood at its peak in 2010-11 at 41.9 per cent, according to a NITI Aayog-sponsored survey conducted by IIM Calcutta. This was the highest in the country. Since then, the ratio has gradually come down and stood at 34.75 per cent in 2018-19 but in the 2020-21 financial year it again shot upto 38.8 per cent indicating the pressure on the economy of the state.
A comparative study shows that the states with the highest debt-GSDP ratio in FY22 are Punjab (53.3 per cent), Rajasthan (39.8 per cent), West Bengal (38.8 per cent), Kerala (38.3 per cent) and Andhra Pradesh (37.6 per cent). All these states receive revenue deficit grants from the Centre.
Former chief economic advisor to the central government and BJP MLA Ashoke Lahiri said: “What is worrying us more is a constant increase in the primary deficit (fiscal deficit minus interest payment). Figures from RBI show that GSDP to primary deficit was 0.4 per cent in 2019-20. In a year that shot up to 1.4 per cent and in 2021-22 that is 1.9 per cent. This points to the fact that even if the interest burden is removed, the state continues to borrow more”.
The precarious financial condition of the state was evident from the sudden increase in market borrowing. The market borrowing of West Bengal so far in the fiscal year 2022 is 20 per cent higher on a year-on-year basis, according to a report by the CARE Ratings. Only Nagaland, up by 71 per cent, had a higher borrowing during the period than West Bengal.
Haryana (by 11 per cent), Sikkim (by 7 per cent), Jammu and Kashmir and Maharashtra (by 4 per cent each) and Rajasthan (by 3 per cent) are the few other states that have higher borrowings so far in the current fiscal than the comparable period of a year ago. In the case of other remaining states, it is lower than last year.
According to the statement issued by the Reserve Bank of India, the state is likely to borrow 12 times raising around Rs 20,000 crore from the market between the period of January 1 and March 31 making it obvious that the state government is struggling hard to negotiate the expenses caused by the social schemes launched by Chief Minister Mamata Banerjee.
Interestingly enough, in the period between April 2020 and December 2020 when the state revenue plummeted to all time low because of the pandemic situation and the consequent lockdown, the state raised around Rs 35,000 crore from the market but during the current financial year between April 2021 to December 2021, it went for a market borrowing of Rs 52,500 crore. During the same period in 2019, the state borrowed Rs 28,000 crore via State Development Loan.
Incidentally, when the 34-year rule of the Left Front came to an end in 2011 and Mamata Banerjee became the chief minister, the accumulated debt of the state was Rs 1.93 lakh crore. But, according to the state government’s budget figures, the accumulated debt is likely to go upto Rs 5.5 lakh crore by the end of the 2020-21 financial year.
The state government’s dying effort to negotiate the huge cost of non-planned expenditure came to the fore when recently chief minister Mamata Banerjee directed all the departments to cut down on unnecessary expenditure beyond the approved budget and not to take any new project without the approval of the state Chief Secretary or the finance department. The announcement was an obvious indication that the government is trying to negotiate the financial burden caused by the non-planned expenditure of the dole politics announced by the chief minister Mamata Banerjee before the election.
After coming to power for the third time- Chief Minister Mamata Banerjee announced two major schemes – ‘Lakshmir Bhandar’ and ‘Swastha Sathi’ for all – the schemes that demand a huge financial involvement. ‘Lakhmir Bhandar’ is a project where the state is supposed to give Rs 1,000 to the women belonging to SC/ST/OBC and Rs 500 to the women belonging to General caste. The government has allocated a budget of approximately budget of Rs 12,900 crore for around 1.8 crore women who have so far registered themselves for the scheme.
Initially the government had an estimate that nearly 2 crore beneficiaries will register for ‘Lakshmir Bhandar’ project but so far, the government has received an application of 1.63 crore of which 1.52 crore has been approved. Nearly 7 lakh applications have been cancelled. The government has spent more than Rs 800 crore for the project and going by the figure the finance department estimates that the state government will have to cough up another Rs 5,600 crore which might in turn lead to a staggering figure in a full financial year.
Countering the Centre’s Ayushman Bharat, the state launched its own scheme – ‘Sasthya Sathi Prokolpo’ where some citizens of the state were given an annual health coverage of five lakh rupees. After coming to power in 2021, the chief minister opened ‘Swastha Sathi’ for all the citizens of the state leading to a quantum leap in the expenditure. Even a year back when the estimated budget for this project was around Rs 925 crore, this year the allocation touched an astronomical figure of Rs 2,000 crore annually.
According to experts, with the decline of the revenue generation, multiple market borrowings have now become the essential compulsion of the West Bengal government now to meet its recurring expenses.
They are of the opinion that the state is struggling with the non-plan expenditure mostly to meet the promises made by Chief Minister Mamata Banerjee during her election campaign.
National News
CM Yogi’s ‘2 namoone’ jibe at Oppn over codeine row, Akhilesh hits back with a twist (Lead)

Lucknow, Dec 22: Uttar Pradesh Chief Minister Yogi Adityanath on Monday launched a tirade at the opposition over the codeine cough syrup controversy and hurled a ‘2 namoone’ jibe — pointed towards two ‘young’ leaders, one in Delhi and the other in Lucknow.
The Chief Minister, speaking in the Legislative Assembly, rejected any reports of death in the state due to codeine syrup and also vowed to take bulldozer action against those involved in its manufacture and illegal trade.
“No deaths have occurred from codeine cough syrup in Uttar Pradesh… There are two namoones inside the country, one sitting in Delhi and one in Lucknow. Whenever any discussion happens in the country, they immediately flee the country,” he said, taking a swipe at the Leader of Opposition (LoP) Rahul Gandhi and Samajwadi Party (SP) supremo Akhilesh Yadav, without taking names.
The Chief Minister added that strict action would be taken under the Narcotic Drugs and Psychotropic Substances (NDPS) Act against all those involved in illegal trade and also drew a link between the syrup’s licence with the then SP government.
“The biggest wholesaler, who was first caught by the STF, was issued a licence by the Samajwadi Party in 2016,” he pointed out.
CM Yogi’s remarks in the Assembly came on the back of opposition leaders staging a protest inside and outside the Assembly, demanding a discussion on the cough syrup matter.
The SP chief was, however, quick to respond to the Chief Minister’s diatribe and hit back with a twist.
Akhilesh Yadav interpreted CM Yogi’s remarks as “self-acceptance of two power centres” in the BJP and projected it as a fight between the two.
Insinuating that there was a power tussle between the BJP’s central leadership and the Yogi government, he said that it has come out in the open and the latter should be “wary of offending” the former.
“Self-Acceptance! No one expected the Delhi-Lucknow feud to escalate to this point. People holding constitutional positions should at least maintain some public decorum among themselves and not cross the bounds of propriety. BJP folks should not bring their party’s internal squabbles out to the crossroads. If someone takes offence somewhere, you might have to backtrack,” he wrote in a post on X.
National News
BJP backs RSS chief’s ‘Hindu Rashtra’ remarks, Oppn says Constitution run’s country

New Delhi, Dec 22: The BJP on Monday came out in support of Rashtriya Swayamsevak Sangh (RSS) chief Mohan Bhagwat’s remarks describing India as a “Hindu Rashtra” and his comments flagging what he termed “Islamic extremism” in West Bengal, triggering sharp political reactions across parties.
Addressing a gathering on Sunday, Bhagwat had asserted that India is a “Hindu nation” and said no constitutional sanction is required for it, as it is a “truth”.
He also raised questions over suspended Trinamool Congress MLA Humayun Kabir’s announcement to construct a Babri Masjid-like mosque in West Bengal, alleging that the move was “being done for votes”. The RSS chief further stated that government funds should not be used for the construction of religious places.
Backing Bhagwat’s remarks on Bengal, BJP spokesperson Pratul Shah Deo cited recent developments in Murshidabad, where an announcement regarding the construction of a Babri Masjid had been made.
Speaking to media, Deo said, “The entire West Bengal government called Maulanas there and afterwards, a large gathering was held where it was stated that we will build the Babri Masjid here. This is being done solely by the Trinamool Congress to appease the Muslim community, which is an insult to the Sanatanis. For show, they did suspend the MLA, but his arrest has not yet been made, indicating collusion between the government and this suspended MLA.”
He further alleged that the issue was deliberately raised with elections approaching.
“This is not an issue that needed to be raised at this time, but with elections in sight, the Trinamool Congress has deliberately raised this issue through one of its MLAs. So, the RSS chief is right,” Deo added.
BJP MLA Ram Kadam also supported Bhagwat’s remarks and stressed the need for Hindu unity.
Speaking to media, Kadam said, “Our Sarsanghchalak’s statement is true and attempts to shed light on the reality. On the sacred land of West Bengal, Mamata Banerjee and her supporters have caused suffering, harassment and oppression to our Hindus. They have forced their way into homes, committed misconduct against women and the people of Bengal are witnessing all of this.”
Kadam further alleged political motives behind references to Babri Masjid.
“Those who claim to speak in the name of Babri are doing so only for political gains. They do not care for anyone and are merely using excuses to gain control over a particular religion. However, if Hindus unite, no one would dare to engage in such Pakistan-pleasing, deceitful actions,” he said.
Shiv Sena leader Manisha Kayande emphasised that Hindus should unite in the face of emerging challenges.
“Considering the kind of activities taking place in our country and the nature of threats we face, Hindus should not divide themselves on the basis of caste and must unite. Our party firmly believes in this stance,” she told media.
The Opposition, however, strongly criticised the RSS chief’s remarks, asserting that India is governed by the Constitution and not by ideological declarations.
Samajwadi Party MP Awadhesh Prasad questioned the premise of the “Hindu Rashtra” statement.
Speaking to media, he said, “I would like to ask Mohan Bhagwat, very respectfully, what kind of Hindu nation he wants. Today, the highest constitutional and administrative positions in our country are held by Hindus. The President, the Prime Minister and the Chief Justice of the Supreme Court are all Hindus.”
Prasad pointed out that political leadership across parties is predominantly Hindu.
“Leaders of the ruling party are Hindus, and even leaders of the Opposition, including the Samajwadi Party, are Hindus. The Chief Minister of Uttar Pradesh is also a Hindu. So what is the scale or definition by which they measure who is Hindu and Hindu Rashtra?” he asked.
He further said Bhagwat must clarify whether such a vision aligns with constitutional values.
“Our country functions through the Constitution, through which Baba Saheb Ambedkar gave equal rights to all communities. Bhagwat should clarify whether he intends to follow the Constitution framed by Baba Saheb Ambedkar in his so-called Hindu Rashtra,” Prasad added.
Janata Unnayan Party founder Humayun Kabir also reacted to Bhagwat’s comments, dismissing fears of unrest.
Speaking to reporters, he said, “We respect Mohan Bhagwat, but his assessment that there might be riots here is incorrect. We will not allow any such situation. When a Trinamool leader announced the construction of a temple, there were no riots. So why would it happen now?”
Kabir further alleged links between the RSS and the Bengal government.
“Mohan Bhagwat needs the state government’s permission to visit here. Since Mamata Banerjee has been helping the RSS in the state, the number of their shakhas has increased from 558 to 12,000. On the other hand, madrasas receive nothing, and the Muslim community does not get any benefits,” he claimed.
Crime
SC stays conviction of ex-NCP minister Manikrao Kokate in Nashik housing fraud

New Delhi, Dec 22: The Supreme Court on Monday stayed the conviction of senior Nationalist Congress Party (NCP) leader and former Maharashtra minister Manikrao Kokate in the 1995 Nashik housing fraud case.
A Bench of Chief Justice of India (CJI) Surya Kant and Justice Joymalya Bagchi issued notice to the Maharashtra government on Kokate’s plea challenging the refusal of the Bombay High Court to stay his conviction. Though it protected his membership in the Maharashtra Legislative Assembly, the apex court clarified that Kokate will not be allowed to exercise any governmental powers while the proceedings are pending.
“Issue notice. Meanwhile, the conviction of the petitioner shall remain stayed to the extent that there shall be no disqualification as a Member of the Legislative Assembly. However, no power shall be exercised by the petitioner,” the CJI Kant-led Bench ordered.
The relief from the top court comes days after the Bombay High Court had refused to stay Kokate’s conviction but suspended his two-year jail sentence and granted him protection from arrest as it heard his revision plea against the sessions court verdict.
Earlier, a Nashik sessions court had convicted Kokate in a case involving the illegal acquisition of government flats reserved under the Chief Minister’s quota and sentenced him to two years’ rigorous imprisonment along with a fine of Rs 50,000.
Following the sessions court verdict, Kokate was stripped of the Sports and Minority Affairs portfolios, and he resigned from the Maharashtra Cabinet. His resignation was accepted by Maharashtra Deputy Chief Minister and NCP chief Ajit Pawar amid a chorus from the Opposition.
The case against Kokate and his brother Vijay Kokate dates back to 1995 and pertains to the alleged misappropriation of flats meant for low-income individuals who do not own any other property.
The prosecution alleged that the brothers submitted forged affidavits and documents to acquire flats in the Nirman View Apartment at Canada Corner in Nashik. Investigations had also revealed that the brothers were using two additional flats in the same building that had been allotted to other beneficiaries.
Based on an inquiry by the district administration, Vishwanath Patil, then an official of the Urban Land Ceiling (ULC) department, lodged a complaint, following which a fraud case was registered at the Sarkarwada Police Station.
Since his induction into the Cabinet, Kokate has frequently courted controversy. He was earlier divested of the Agriculture portfolio following allegations that he was playing games on his mobile phone during a Legislative Council session.
Kokate denied the charge, but the episode drew widespread criticism. He also drew criticism for remarks on farmers and for attacking coalition partner BJP during a municipal campaign.
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