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.
Crime
47.3 kg heroin seized in Punjab, four held

Chandigarh, Sep 20: In a major breakthrough, Punjab Police on Sunday said it had busted a cross-border heroin smuggling network by apprehending four operatives and recovering 47.3 kg of heroin, three pistols, three magazines, 15 cartridges, and two vehicles.
Preliminary investigation revealed that the accused are linked to a network involved in cross-border smuggling of heroin and illegal arms into Punjab, Director General of Police Gaurav Yadav wrote on X.
He said the first investigation report (FIR) was registered in Faridkot.
Further investigation is underway to uncover the wider network and establish its linkages.
A day earlier, Counter Intelligence (CI) Amritsar busted another cross-border narcotics smuggling module with the arrest of three key operatives and recovered 17 kg of heroin from their possession. Police had identified the arrested as Prince, Malkit Singh, and Rajinder Singh, all residents of Kot Mit Singh in Amritsar.
Apart from the heroin, police teams also impounded a car used for transporting the contraband.
With this seizure on Saturday, CI Amritsar has pushed the total recovery of heroin to 54 kg in four days, having previously recovered consignments of 27 kg and 10 kg.
DGP Yadav said CI Amritsar teams had received specific input that three operatives of the smuggling module had received a drone-dropped consignment and were expected to strike a major drug deal beneath the flyover on the Amritsar-Tarn Taran road. Acting promptly, police established a checkpoint and intercepted their car near the park by the flyover. During the search, 17 kg of heroin was recovered.
On September 16, four persons were held with 27 kg of heroin and a foreign-made .30 bore PX5 pistol with three cartridges. On September 18, one person was held with 10 kg of heroin.
National News
‘Should become stand-up comedian’, BJP’s swipe at Rahul Gandhi over mimicry of Prime Minister

New Delhi, Sep 20: The Bharatiya Janata Party (BJP) on Sunday lashed out at the Leader of Opposition in the Lok Sabha Rahul Gandhi, suggesting him to double up as a “stand-up comedian” at his ‘Chhatron Ki Goonj’ events.
A political row erupted after a comedian allegedly mocked Prime Minister Narendra Modi while sharing the stage with LoP Gandhi during the Indore event.
Speaking to reporters, Union Minister of Sate Arjun Ram Meghwal accused the Congress leader of lying and insulting Indian culture.
“He misleads students and attempts to spread anarchy,” the Law Minister alleged.
Urging Gandhi to speak with responsibility, he added: “By insulting Indian culture and criticising Narendra Modi ji, he ends up criticising India and insulting Indian civilisation and culture.”
Maharashtra Chief Minister Devendra Fadnavis took a dig at the LoP, saying: “Rahul Gandhi was doing mimicry. I believe he should leave the party and become a stand-up comedian because he has rendered his party unemployed. At least he would have a job as a stand-up comedian.”
Talking to media, BJP leader Prakash Javadekar accused Congress of crossing all limits of decency.
“Rahul Gandhi spends his time in every meeting abusing PM Modi, but he doesn’t realise that the more he abuses him, the more PM Modi’s votes will increase, and people’s sympathy for him also increases…The Congress is behaving shamelessly, and there is no one to tell them this,” he said.
BJP MP Nishikant Dubey told media: “There is a ‘Jhooth Ki Goonj’ across the country. One can understand the situation. No one is willing to come to listen to Rahul Gandhi. He has lost more than a hundred elections.”
BJP leader Virendra Sachdeva echoed similar views, saying: “Rahul Gandhi organises events and programmes. He does not understand political issues or the pulse of society. He functions like an event company, organises a programme and leaves.”
“While Prime Minister Narendra Modi’s message is for the country, for every section of the society, and the youth are not left out of it,” he asserted.
BJP leader T.R. Sriniwas also took a jibe at the Leader of Opposition, saying Gandhi will end up shutting down comedy shows, “with the kind of act he put on yesterday”.
“The way they called a stand-up comedian onto the stage yesterday and had him do comedy with Rahul ji, he wasn’t a student at all. The way it appeared to me—and to anyone watching who has even a little bit of sense—it was just a comedy show,” he remarked while speaking to media.
However, Congress MP Pramod Tiwari backed Rahul Gandhi.
“The surging sea of students during the event and the visible enthusiasm reflected that the lamp of the BJP is dimming. All I can say is congratulations on the success of the Chhatra Ki Goonj event,” he told media.
Crime
Delhi Police trace minor girl after 8 years, recover her from Bihar

New Delhi, Sep 20: The Delhi Police have solved a long-pending missing-person case after the minor was found in Bihar after eight years of sustained efforts, officials said on Sunday.
The Anti-Human Trafficking Unit (AHTU) of Delhi Police’s Central District successfully traced and recovered the minor girl from Bihar, bringing an end to a long-pending case registered at Anand Parbat police station.
The case dates back to October 14, 2018, when an FIR was registered at PS Anand Parbat in connection with the alleged missing and kidnapping of a minor girl, who was then 14 years old and a resident of the national capital’s Anand Parbat area.
Following the registration of the case, sustained efforts were made by the police to trace the missing girl and ascertain her whereabouts. During the course of the investigation and search operations, the AHTU team examined footage from multiple CCTV cameras and conducted extensive searches at around 90 shelter homes for girls, 52 orphanages, religious places, and red-light areas across Delhi-NCR.
Despite the extensive searches and multiple efforts undertaken over the years, the whereabouts of the missing girl could not initially be established. The AHTU team, however, continued to pursue available leads and kept working on the long-pending case.
A few months ago, the team received a crucial secret input indicating that the missing girl might be present in Uttar Pradesh’s Kanpur. Acting promptly on the information, a dedicated team was constituted to trace and recover her.
The team comprised Sub-Inspector Raj Bahadur Singh, Head Constable Surender and Woman Constable Manisha. The team worked under the supervision of Inspector Anil Yadav, In-charge of AHTU, with overall supervision by the ACP, DIU.
Following the development of the lead, the police team immediately travelled to Kanpur and conducted searches at the location indicated by the source. However, upon reaching the spot, the team learnt that the missing girl had been moved from the location shortly before their arrival.
The police team did not abandon the search and continued checking the surrounding areas while developing additional local sources in an effort to trace her whereabouts. Despite these efforts, no immediate clue could be established at that stage.
The team continued to follow the lead and subsequently received information suggesting that the missing girl might be residing in Bihar’s Samastipur district. Acting on the newly developed information, the AHTU team proceeded to Samastipur on September 15.
Through sustained technical surveillance, field verification and persistent ground-level efforts, the team was able to narrow down the location of the missing girl to Shahpur Patori.
The police team subsequently conducted a search operation in the area and successfully located and recovered the missing girl from Patori with the assistance of the local police.
Following her recovery, the girl was brought back to Delhi on September 17 and produced for medical examination. She was subsequently counselled, and her statement was recorded under Section 183 of the Bharatiya Nagarik Suraksha Sanhita (BNSS).
After completion of the requisite legal and procedural formalities, the recovered girl was handed over to her parents, facilitating her reunion with her family after eight years.
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