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Bengal's Debt to Soar Past Rs 8 Lakh Crore by 2027, Budget Reveals

The West Bengal interim budget projects the state's accumulated debt will reach approximately Rs 8.15 lakh crore by the end of the 2026-27 financial year. This represents a significant increase from the Rs 1.90 lakh crore debt level at the end of the last Left Front regime in 2010-11. Economists attribute the soaring debt to massive revenue expenditures on welfare schemes coupled with limited growth in the state's own tax revenue. Debt repayment for 2026-27 is estimated at nearly Rs 97,640 crore, adding further pressure to the state's finances.

Key Points: West Bengal Debt Projected at Rs 8.15 Lakh Crore by 2027

  • Debt to hit Rs 8.15L cr by 2027
  • 6.5% annual debt increase
  • Repayment pegged at Rs 97,640 cr
  • Revenue deficit projected at Rs 21,759 cr
2 min read

Bengal interim budget pegs 2026-27 debt at over Rs 8.15 lakh crore

West Bengal's interim budget projects state debt to exceed Rs 8.15 lakh crore by 2026-27, with economists warning of revenue challenges.

"skyrocketing revenue expenditure and limited avenues of state tax revenue generation are extremely difficult to manage - Economists"

Kolkata, Feb 5

The West Bengal government will end the financial year 2026-27 with an accumulated debt figure of around Rs 8.15 lakh crore, as indicated in the documents of the interim budget for the fiscal under review, which was presented by the West Bengal Minister of State for Finance Chandrima Bhattacharya on the floor of the Assembly on Thursday.

The total accumulated debt by March 31, 2027, has been pegged at Rs 8,15,891.35 crore in the Budget estimates for 2026-27, which is 6.5 per cent higher than the figure of Rs 7,62,326.61 crore as on March 31, 2026, as per the revised estimates for 2025-26.

Incidentally, at the end of the financial year 2010-11, which was the last financial year under the previous Left Front regime, the total accumulated debt was a little over Rs 1.90 lakh crore.

The total debt repayment figure (principal plus interest) as per the Budget estimates for 2026-27 has been pegged at Rs 97,640.32 crore, which is substantially higher than the figure of Rs 83,148.98 crore as per the revised estimates for 2025-26.

While the revenue deficit as of March 31, 2027, is projected at Rs 21,759.34 crore, the fiscal deficit as of the same period has been pegged at Rs 62,423.36 crore.

Economists feel that such projected accumulated debt figures are inevitable in a situation where there is no concrete proposal for generating higher state's own tax revenue, while there are huge revenue expenditures on account of different social welfare and dole schemes.

The two parallel factors, namely skyrocketing revenue expenditure and limited avenues of state tax revenue generation, are extremely difficult to manage at the same time, economists feel.

According to them, even during the previous Left Front regime, the avenues for higher state tax revenue generation were limited. However, the previous regime used to balance its limited resources by limiting its revenue expenditure.

- IANS

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Reader Comments

P
Priyanka N
While welfare schemes are important, this level of debt is unsustainable. Nearly Rs 1 lakh crore just for debt repayment next year! That's money that could have been used for infrastructure, hospitals, or schools. The government needs a concrete plan for revenue generation, not just more borrowing.
S
Suresh O
The article mentions the previous regime limited expenditure. Sometimes, fiscal discipline is necessary. You cannot keep giving out doles without a plan to pay for it. This is basic home economics, applied to a state. Bengal's youth will inherit this massive burden.
A
Ananya R
It's easy to criticize, but we must acknowledge the context. The pandemic required massive spending, and support for the poor is a moral imperative. However, I agree respectfully that the government must now focus on attracting industries and investments to Bengal to boost its own tax revenue. The debt figure is scary.
D
David E
As someone who follows state finances, this is a classic case of a revenue-expenditure mismatch. When your committed spending (salaries, pensions, schemes) grows faster than your income (taxes), debt is the only outcome. Tough choices on both sides of the ledger are needed.
K
Kavya N
So much money! Just imagine if even a fraction of that interest payment was invested in improving roads, public transport, or cleaning the Ganga. Development gets stalled when you're paying past bills. Hope the government has a vision beyond the next election cycle.

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