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
Police evict Rahul Gandhi, Akhilesh Yadav from dharna near PM’s residence

New Delhi, July 21: Police forcibly removed Leader of the Opposition in the Lok Sabha Rahul Gandhi, Congress MP Priyanka Gandhi Vadra, Samajwadi Party chief Akhilesh Yadav and several opposition MPs from their dharna site near Prime Minister Narendra Modi’s official residence in New Delhi on Tuesday, after they marched towards Lok Kalyan Marg demanding action over alleged examination paper leaks and police action against student protesters.
Rahul Gandhi, who sat on the road refusing to leave, was surrounded by several police personnel before being escorted into a police vehicle along with other opposition leaders. The protest came a day after a students’ march to Parliament witnessed police intervention.
Earlier, Congress president Mallikarjun Kharge, Rahul Gandhi and Priyanka Gandhi led party workers from Kharge’s residence to the Prime Minister’s residence, intensifying the opposition’s campaign on education-related issues. Before being detained, Rahul appealed to people to join the dharna, saying, “An attack on students is an attack on every Indian family,” and accused the government of failing to answer concerns raised by students.
In a significant development, Union Minister of State in the Prime Minister’s Office Jitendra Singh met Rahul Gandhi at the protest site. Congress leaders said the talks remained inconclusive as the party insisted on the resignation of Union Education Minister Dharmendra Pradhan and a discussion in Parliament on alleged examination paper leaks.
Congress MP Syed Naseer Hussain said the party would continue its protest until its demands were met. Jitendra Singh, however, maintained that the government was ready to hold a discussion in Parliament on education-related issues and alleged that the Congress later made the minister’s resignation a precondition.
The Congress has also demanded that Prime Minister Narendra Modi and Union Home Minister Amit Shah apologise or resign over the police action against protesters during Monday’s march. The protest received support from opposition leaders, including NCP(SP) MP Supriya Sule, Samajwadi Party chief Akhilesh Yadav, NCP(SP) president Sharad Pawar and AAP leader Arvind Kejriwal, signalling broader opposition backing for the agitation.
National News
‘Govt stands with Yuva Shakti’: NDA backs PM Modi’s ‘swift action’ stand on NEET paper leak

New Delhi, July 21: Amid the Opposition’s criticism over the violence during the NEET-UG paper leak protest, the National Democratic Alliance leaders on Tuesday came in support of Prime Minister Narendra Modi’s statement that the government took swift action over the exam irregularities, asserting that the Centre stands with the country’s ‘Yuva Shakti’ (youth power).
During the NDA’s ‘Mangal Milan’ programme, PM Modi stated that the issue of paper leaks is “not limited” to a single state or the Central government; rather, it is a “matter of concern for the entire nation”, while adding that the government has acted promptly, resulting in the arrest of 13 individuals related to the case so far.
Responding to the same, Union Minister and Republican Party of India (A) chief Ramdas Athawale said: “The Prime Minister has explained about the NEET exam that whatever has happened is not right, and lakhs of students have faced difficulties. Those who have made such an attempt have all been caught, and they should be punished severely.”
“He (Prime Minister) has said that along with the Central government, it is also the responsibility of the state governments and their administration to ensure that such instances don’t occur during exams,” Athawale told media outside Parliament House.
He asserted that the “government stands with Yuva Shakti”.
“We are in the government due to the youths. Whatever Lok Sabha Leader of Opposition Rahul Gandhi is saying is baseless,” the Union Minister added.
NCP MP Praful Patel added that Prime Minister Modi “heavily praised” the youth power of India.
“To further promote this youth power and keep their future secure, we should take all possible steps. Incidents like NEET and other such events that have occurred should never be repeated; we have taken a resolve for this too. The contribution of India’s youth, from space to every field, has been greatly praised by PM Modi,” he told media.
Further, BJP MP Ravi Kishan said: “PM Modi has given a big message that the best legal counsel in the country should be hired to ensure that all those involved (in paper leaks) are severely punished so that going ahead no one dares to mess with the future of the children in the nation, just to earn a few lakhs of rupees.”
However, AIMIM chief and MP Asaduddin Owaisi questioned the Centre, asking, “What about the students who died? What about those who had to reappear for the exam but could not secure the same rank? Their time has already been lost. What will you do for them?”
This comes a day after scores of students, led by the Cockroach Janta Party (CJP), attempted to march to Parliament demanding the resignation of Union Education Minister Dharmendra Pradhan for the May 3 NEET paper leak.
Crime
Crime shock: Key witness gunned down, elderly couple found murdered in Bihar

Patna, July 21: Two shocking incidents of violent crime were reported in Bihar on Monday, with a key witness in a murder case shot dead in Jehanabad and a retired bank employee along with his wife found murdered in their Muzaffarpur residence. Police have launched separate investigations into both cases.
Police have launched separate investigations into both cases.
A man was shot dead by armed assailants near Dakra Mor under the Makhdumpur police station area of Jehanabad district. The deceased has been identified as Vijay Yadav, a resident of Parsauna village.
According to police, Vijay Yadav was returning home with his son after getting wheat milled when more than a dozen motorcycle-borne criminals intercepted them. The attackers allegedly first tried to seize his son, who managed to escape, before opening fire on Vijay Yadav.
He died on the spot after sustaining multiple gunshot wounds, while the assailants fled. The victim’s son, Amarnath Yadav, alleged that his father was murdered to prevent him from testifying in court.
According to the family, Vijay Yadav was the principal witness in the murder case of his elder son and was scheduled to depose before the court on August 6. They claim the accused eliminated him to influence the ongoing trial.
Police reached the scene soon after the incident, recovered the body, and sent it to Sadar Hospital, Jehanabad, for post-mortem examination. They said all possible angles, including the alleged witness-related motive, are being examined, while raids are underway to arrest those involved.
In a separate incident, a retired Punjab National Bank (PNB) cashier, Ashok Kunwar, and his wife Neelam Devi were found murdered inside their residence in Muzaffarpur late Monday evening.
The case came to light after the couple’s son, Dr. Nikhil Kumar, noticed suspicious activity through CCTV cameras connected to his mobile phone. The footage reportedly showed two unidentified men entering the premises and captured his mother running towards the rooftop.
When repeated calls to his parents went unanswered, he alerted a neighbour, who discovered the bodies and informed the police.
Police said Ashok Kunwar’s body was found in a bedroom on the second floor with multiple stab injuries, particularly on his back. Neelam Devi’s body was recovered from a room on the third floor. Police found her hands and feet tied with rope and adhesive tape covering her mouth.
Preliminary findings indicate that she may have died due to strangulation. A forensic team and dog squad examined the crime scene. Investigators recovered several items, including gloves, adhesive tape, and a bag, which have been seized for forensic examination.
Muzaffarpur Senior Superintendent of Police Kantesh Kumar Mishra said preliminary evidence suggests the murders occurred on Monday evening. CCTV footage has revealed two suspects, whose identities are being established.
Police also plan to question the three tenants residing in the building as part of the investigation. Officials said the exact cause of death and sequence of events will be confirmed after the post-mortem reports and forensic analysis.
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