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
Mixed response to Jharkhand bandh, ABVP workers held during protest in Ranchi

Ranchi : The bandh called by the BJP across Jharkhand and the Assembly gherao programme organised by the Akhil Bharatiya Vidyarthi Parishad (ABVP) in Ranchi on Tuesday, in protest against the police lathicharge on students agitating over alleged irregularities in the JPSC and JSSC recruitment examinations, witnessed a mixed response.
While BJP workers staged demonstrations and blocked roads at several locations in the state capital, ABVP activists attempting to march towards the Jharkhand Assembly were stopped and detained by the police.
Despite sporadic disruptions, normal life remained largely unaffected in many parts of Ranchi during the morning hours. Most commercial establishments stayed open and vehicular movement was largely smooth across the city.
From around 8 a.m., BJP workers took to the streets in several localities, urging traders to down shutters in support of the bandh. Road blockades were reported from Kanke Road, Ratu Road, Harmu Chowk, Argora Chowk, Bodeya and near the CMPDI gate.
Protesters also burnt tyres at several places, disrupting traffic for brief periods before police personnel cleared the roads and restored movement.
In Namkum, BJP workers staged a sit-in protest at Bazaar Chowk around 11 a.m. and blocked the Ranchi-Jamshedpur highway after burning tyres. Police later detained the protesters and removed the blockade, resulting in long queues of vehicles on both sides of the highway.
A similar protest was organised in Lowadih under the leadership of BJP Mandal president Ashok Gop. According to police, 11 bandh supporters were detained from Lowadih and 17 from Namkum and taken to the local police station.
However, the impact of the bandh was uneven across the state capital. Markets remained open and traffic moved normally in several areas, including Main Road, Bariatu and Morabadi.
Meanwhile, the ABVP’s Assembly gherao programme saw activists from across the state gather near the old Assembly complex to protest Monday’s police action against students associated with the JPSC-JSSC movement.
Sloganeering activists sat on the road and attempted to proceed towards the Assembly premises, but were stopped by police.
A brief scuffle ensued between protesters and security personnel during the standoff.
Police subsequently detained the activists and escorted them into buses. In a dramatic show of protest, some student leaders climbed onto bus roofs and continued raising slogans, while others lay down on the road in front of and behind the vehicles.
Outside Ranchi, the bandh had a more pronounced impact in several districts, including Hazaribagh, Palamu, Giridih and Chatra, where BJP workers organised demonstrations and road blockades, affecting vehicular movement.
In Palamu district, BJP workers blocked roads at Chhahmuhan and Redma Chowk in Daltonganj from the early hours of the morning. BJP’s Palamu district president Amit Tiwari accused the state government of endangering the future of the state’s youth through alleged irregularities in recruitment examinations.
In Simdega, party workers blocked National Highway-143 at multiple locations, including Biru, disrupting traffic. Similar road blockades were reported from Dhanwar in Giridih district and Pratappur in Chatra district. Demonstrations backing the bandh were also reported from several other parts of the state.
The bandh call came a day after clashes erupted between students and police during a march towards the Jharkhand Assembly. Thousands of students had gathered on Monday demanding cancellation of the disputed JPSC and JSSC examinations, reforms in the recruitment process, and a CBI probe into the alleged irregularities.
Police had erected multiple barricades to prevent protesters from advancing towards the Assembly. Water cannons and tear gas were used to disperse the crowd, following which a lathicharge was carried out. Several students and police personnel were reportedly injured in the confrontation.
National News
Huge uproar in Jharkhand Assembly over JPSC-JSSC recruitment row, NDA demands CBI probe

Ranchi : The issue of alleged irregularities in recruitment examinations conducted by the Jharkhand Public Service Commission (JPSC) and the Jharkhand Staff Selection Commission (JSSC) dominated proceedings inside and outside the Jharkhand Assembly on Tuesday, the fourth day of the Monsoon Session.
Opposition members raised slogans and stormed the Well of the House, demanding a CBI probe into the alleged recruitment scam.
As soon as Assembly proceedings commenced at 11:07 a.m., BJP legislators, led by Leader of Opposition Babulal Marandi, rose from their seats and began protesting, seeking answers from the government over the JPSC-JSSC recruitment controversy. Several opposition members soon entered the Well of the House and continued sloganeering.
Assembly Speaker Rabindra Nath Mahato repeatedly urged the protesting members to return to their seats and allow Question Hour to proceed.
He remarked that all members were concerned about the interests of students and stressed the need for the House to function smoothly.
However, despite his repeated appeals, the disruption continued, forcing the Speaker to adjourn the proceedings until noon.
The confrontation also triggered sharp exchanges between members of the ruling alliance and the opposition.
Congress Legislature Party leader Pradeep Yadav accused the opposition of wasting the Assembly’s time and attempting to create an atmosphere of disorder in the state.
He said the government was serious about safeguarding the future of students and noted that cases related to the JPSC-JSSC recruitment examinations were already being investigated by the state’s Criminal Investigation Department (CID).
Yadav further stated that students staged a protest outside the Assembly on Monday and that the government would place the entire sequence of events before the House.
He alleged that while the students’ demonstration was peaceful, some individuals allegedly linked to the BJP attempted to disrupt the situation. According to him, the administration had also arranged transportation to facilitate the students’ return after the protest concluded.
Opposition members maintained that only a CBI investigation could ensure an impartial probe into the alleged irregularities in the recruitment examinations. They also raised the issue of alleged police action against students during Monday’s Assembly gherao protest.
Crime
Darshan fan murder case: K’taka cops trace two industrialists, woman after threats to witness

Bengaluru : Police investigating the alleged kidnapping and life threats issued to Sandeep, a witness in the Renukaswamy murder case, have reportedly traced two industrialists who allegedly played a key role in threatening him.
The two have been identified as Kiran and Gaurav Shetty, police said on Tuesday. Investigators are also examining the role of an influential woman in the case.
According to police sources, forensic analysis of call records has revealed that Kiran and Gaurav Shetty were on a conference call when Sandeep was allegedly threatened. Investigators suspect that the duo used accused Puneeth to intimidate and blackmail Sandeep.
Sandeep, a bar cashier and the 49th witness in the fan murder case, had allegedly been forcibly taken in a car and threatened with dire consequences. Kamakshipalya police subsequently registered a case and began investigating the incident.
Police had earlier arrested three accused persons — Puneeth, Suhas and Venu — in connection with the case. During the investigation, police seized Puneeth’s mobile phone and retrieved his WhatsApp data. The data was subsequently sent to the Forensic Science Laboratory (FSL) for analysis.
The FSL findings reportedly helped investigators establish the communication between the accused and the two industrialists. Police suspect that Kiran and Gaurav were in a conference call with Puneeth at the time Sandeep was allegedly threatened.
Investigators are also examining the role of an influential woman in the case. According to police sources, the woman allegedly contacted Puneeth before Kiran and Gaurav Shetty approached him and asked him to carry out whatever instructions were given by the two industrialists.
Police suspect that the threats to Sandeep were part of an attempt to intimidate him and prevent him from providing information or testimony in the murder case.
The investigation gained momentum after police recovered and analysed digital evidence from Puneeth’s mobile phone. The WhatsApp data and other forensic evidence reportedly helped investigators establish the alleged roles of the accused and their communication with others involved in the case.
Police are now awaiting further technical and forensic reports before deciding on the next course of action against those suspected of involvement.
Sandeep is listed as the 49th witness in the Renukaswamy murder case.
The latest developments have added another layer to the investigation, with police examining whether the alleged threats were intended to influence or intimidate witnesses connected to the case.
The Renukaswamy murder case relates to the alleged abduction and murder of 33-year-old Renukaswamy, a fan of Darshan from Chitradurga. Darshan, Pavithra Gowda and 15 others have been arrested and charge-sheeted in connection with the case.
According to the prosecution, Renukaswamy was allegedly abducted and brought to Bengaluru in June 2024. Investigators have alleged that he was assaulted at a shed before succumbing to his injuries. His body was later allegedly dumped near a stormwater drain on the outskirts of Bengaluru.
The case is currently being tried before the Bengaluru Sessions Court. The Supreme Court had earlier cancelled Darshan’s bail and directed his immediate re-arrest, while also ordering that he should not be given VIP treatment in prison.
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