Fiscal strategy to fund infrastructure and welfare amid rising debt levels raises concerns over long-term economic sustainability
Published on: October 10, 2025
By: BTNI
Location: Kolkata, India
The West Bengal government revealed plans to borrow Rs 29,000 crore in the third quarter of the fiscal year, pushing the state’s total debt burden to an estimated Rs 78,000 crore. Finance Minister Chandrima Bhattacharya outlined the borrowing as essential for accelerating infrastructure projects like rural road networks, urban metro expansions in Kolkata, and enhanced welfare schemes under the Lakshmir Bhandar initiative.
This infusion aims to stimulate post-monsoon recovery and create employment in flood-affected districts, with allocations also earmarked for climate-resilient agriculture amid erratic weather patterns. Chief Minister Mamata Banerjee hailed it as a “pro-people fiscal shield” against central funding delays, but opposition leaders, including BJP’s Suvendu Adhikari, criticized it as reckless spending that could inflate inflation and burden future generations.
Also read- https://www.btnewsindia.com/commissioner-atul-vishwakarma-inspects-cleanliness-at-slrm-centres-and-academic-campus-in-rajnandgaon/ https://www.btnewsindia.com/high-court-overturns-professors-suspension-in-landmark-ruling-on-academic-freedom/
Economists note that while short-term growth is projected at 7-8% in key sectors, the debt-to-GSDP ratio nearing 40% warrants prudent revenue generation strategies. As bond markets react cautiously, this move highlights Bengal’s balancing act between populist measures and fiscal discipline in an election-sensitive year.
