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
‘An Abdul will now become a leader in UP’, says Owaisi after victory of Democratic candidate Abdul El-Sayed in US

AIMIM President Asaduddin Owaisi on Wednesday invoked the victory of Democratic candidate Abdul El-Sayed in the US, to call for building a Muslim political identity in Uttar Pradesh, saying an Abdul will now become a leader in the state.
“An ‘Abdul’ has won in Michigan; now, the ‘Abdul’ of Uttar Pradesh must strengthen his own political identity,” Owaisi posted on X.
He was reacting to the mid-term election results in the United States where Abdul El-Sayed won the Michigan Senate race to become the first Muslim US senator.
The Hyderabad MP said ‘Sanghis’ made many attempts to make mockery of the name “Abdul”.
“The time has come for us to demonstrate that ‘Abdul’ bows in servitude to no one but Allah. We will no longer be the ones laying out carpets for others,” he said.
Owaisi also spoke on the issue during an interaction with the media at his party’s headquarters Darussalam here.
“BJP used to say ‘Abdul makes puncture’. We are saying Abdul will now become leader. He will not lay carpets nor be scared of the RSS nor bow before anybody. Abdul will do his job and become a leader,” he said.
Owaisi slammed the BJP government at the Centre for telling the Delhi High Court that the century-old Qadeemi Masjid, located within the Krishi Bhawan compound in New Delhi, must be removed to make way for the redevelopment of Common Central Secretariat (CCS) under the Central Vista project.
The MP stated that when the construction of Lutyens’ Delhi started in 1908, several villages were acquired but these mosques were not acquired.
“This mosque is a part of cultural and historical heritage of the country. It was built even before Krishi Bhavan. This is registered Waqf. The government is not its owner,” he said.
The MP said Union Minorities Welfare Minister Kiren Rijiju should tell these people that the government is not the owner. He said the mosque existed even before Delhi became the national Capital and the Constitution of India was framed.
“If you want to contest that this is government property, go to the Waqf tribunal and argue there. What do you want to do. It is registered Waqf. There is gazette. You are saying it is the property of Krishi Bhavan. It’s not the property of Krishi Bhavan,” he said.
He slammed the Centre for its argument that the mosque is “impermissible and incompatible with the secular character of government property”.
“Is this your secularism that you want to demolish a registered Waqf property which enjoys legal protection,” he asked.
Owaisi recalled that the Modi government inaugurated the Central Vista project with a Bhoomi Pooja. “Apparently, secularism is not offended by the use of one faith’s rituals for a public project, but is allergic to a mosque that has stood there even before 1912, long before Krishi Bhawan was even built,” he said.
“What will Amit Shah say now,” asked Owaisi when his reaction was sought on Hyderabad District Election Officer R.V. Karnan’s statement that no illegal immigrants were found in Hyderabad’s electoral rolls.
He recalled the statements of BJP leaders that surgical strikes will be conducted on Hyderabad.
He said that the poor suffered a lot because of the Special Intensive Revision (SIR) exercise.
Owaisi said AIMIM helped all eligible voters, irrespective of their religion, during the SIR process.
National News
Akhilesh Yadav’s decision not to contest UP polls draws criticism from BJP; Congress backs SP chief

The BJP on Wednesday criticised Samajwadi Party (SP) President, Akhilesh Yadav’s indication that he would not contest the 2027 Uttar Pradesh Assembly elections, saying he had made the right decision as he would otherwise face the fate of several INDIA Bloc leaders who lost recent electoral contests.
The BJP said Yadav was aware of the political situation and the possibility of facing defeat if he entered the electoral fray.
The controversy follows Yadav’s remarks during his visit to Varanasi on Tuesday. When asked by reporters whether he would contest the next year’s Assembly elections, possibly from a constituency in the city, the former Uttar Pradesh Chief Minister responded in his characteristic witty style.
“We become chief minister when we do not contest elections. So, we will do what is auspicious for us,” he said.
Reacting to his remarks, Uttar Pradesh Cabinet Minister Anil Rajbhar said Yadav lacked the courage to face the public and was making excuses through political statements.
“They do not have the courage to face the public. They know this very well and are simply making excuses and engaging in political theatrics. The Samajwadi Party and its leaders are anti-development, anti-farmer, anti-youth, anti-student and anti-women. They lack the courage to face the people because they know that if they go among the public, voters will reject them decisively,” he told media.
Uttar Pradesh Minister Om Prakash Rajbhar also criticised the SP chief, saying he was unwilling to contest elections or face the public.
“He will neither contest the elections nor go to the people. He is neither willing to enter the electoral fray nor face the public. The people have already rejected Akhilesh Yadav,” he said.
BJP Rajya Sabha MP Prakash Pal said Yadav had taken the right decision by staying away from the electoral contest.
“He has made a very right decision; otherwise, his fate would have been like Kejriwal losing the Assembly election in Delhi, Mamata Banerjee losing in Bengal, and the INDIA Bloc’s chief ministerial face Gaurav Gogoi losing in Assam. He knows that the public is not just defeating the INDIA Bloc but soundly routing them, and even their incumbent Chief Ministers are losing,” Pal said.
However, Uttar Pradesh Minister Nitin Agrawal said contesting elections was an individual’s personal decision and Yadav was entitled to make his choice.
“Who will contest elections and who will not, is an individual’s personal decision. He has decided that he will not contest; that is his personal decision. In a democracy, one should win elections and come to the House. I believe that those who contest elections and win have greater credibility in a democracy. The rest is everyone’s personal choice,” he said.
BJP MLA Paltu Ram also criticised Yadav, alleging that his decision amounted to making a mockery of democracy. He further accused the SP of disregarding democratic values and constitutional institutions, alleging that its tenure in Uttar Pradesh was marked by lawlessness and a ‘goonda raj’.
Meanwhile, Congress spokesperson Surendra Rajput defended the SP chief, saying his decision to contest or not contest the elections would not affect his role in the party’s campaign.
“Whether or not Akhilesh Yadav contests the elections, he is currently an honourable Member of Parliament and will lead the party’s election campaign. The entire responsibility of the party rests on his shoulders. Whatever decision he takes will be acceptable to everyone in the INDIA alliance, as he is one of our key leaders,” he said.
Samajwadi Party MP Lalji Verma also supported Yadav’s decision, saying that not contesting an election could allow a leader to work across the entire state.
“When a leader does not contest an election himself, they get the opportunity to work freely across the entire state. So, certainly, whatever his decision is, it might be of this nature, and we do not have to comment on it,” he said.
Business
ED raids 10 locations in Delhi-NCR, Haryana, Punjab in imported liquor tax evasion case

The Directorate of Enforcement (ED) has conducted search and seizure operations at 10 locations across Delhi-NCR, Haryana, and Punjab in connection with a money laundering investigation linked to the alleged illegal procurement and sale of imported foreign liquor through Gurugram-based liquor vend chain ‘The Theka’.
The searches, carried out by the ED’s Gurugram Zonal Office on Tuesday and Wednesday under the PMLA, covered offices and residences of individuals associated with ‘The Theka’, foreign liquor suppliers, transporters, and others allegedly involved in the liquor syndicate.
According to the ED, the investigation stems from FIRs and charge sheets filed by Haryana Police over allegations of illegal sale of imported foreign liquor and misuse of the bond-to-bond transfer mechanism to evade customs duties and state excise taxes.
The case originated from a complaint by Excise Department officials, who seized 3,921 cases and 176 loose bottles of imported foreign liquor allegedly lacking mandatory holograms and Track & Trace strips from ‘The Theka’ on December 9, 2025. Another FIR was also registered against members of the syndicate for alleged involvement in the sale of spurious liquor.
The ED said its probe revealed that the syndicate exploited the bond-to-bond transfer system, which permits movement of imported liquor between states without immediate payment of customs and excise duties. To facilitate the operation, separate companies were established in Haryana and Goa/Maharashtra and requisite customs licences obtained.
While the liquor was officially meant to be transported to bonded warehouses in Goa or Maharashtra, investigators found that consignments were diverted in connivance with transporters and supplied directly to liquor vends in Gurugram. The liquor was then sold as legitimate imported stock, enabling the syndicate to evade customs duties, VAT, cesses, and other taxes.
The agency alleged that after securing a liquor licence for the 2025-27 period, the syndicate procured and sold imported liquor without holograms and Track & Trace strips to increase profits. More than one lakh bottles of imported liquor were procured and illegally sold between June and November 2025.
According to the ED, the operation yielded profits of 20-25 per cent on illegal sales and generated proceeds of crime exceeding Rs 10 crore.
During the searches, officials recovered and seized incriminating documents, digital records relating to the procurement and movement of imported liquor under customs bond arrangements, and cash amounting to Rs 11 lakh.
Further investigation is underway.
-
Crime4 years agoClass 10 student jumps to death in Jaipur
-
Maharashtra2 years agoMumbai Local Train Update: Central Railway’s New Timetable Comes Into Effect; Check Full List Of Revised Timings & Stations
-
Maharashtra2 years agoMumbai To Go Toll-Free Tonight! Maharashtra Govt Announces Complete Toll Waiver For Light Motor Vehicles At All 5 Entry Points Of City
-
Maharashtra2 years agoFalse photo of Imtiaz Jaleel’s rally, exposing the fooling conspiracy
-
National News2 years agoMinistry of Railways rolls out Special Drive 4.0 with focus on digitisation, cleanliness, inclusiveness and grievance redressal
-
Maharashtra2 years agoMaharashtra Elections 2024: Mumbai Metro & BEST Services Extended Till Midnight On Voting Day
-
National News2 years agoJ&K: 4 Jawans Killed, 28 Injured After Bus Carrying BSF Personnel For Poll Duty Falls Into Gorge In Budgam; Terrifying Visuals Surface
-
Crime2 years agoBaba Siddique Murder: Mumbai Police Unable To Get Lawrence Bishnoi Custody Due To Home Ministry Order, Says Report
