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Bengal Budget Projects 6.2% Tax Revenue Rise, Led by SGST & State Excise

West Bengal's interim budget for 2026-27 projects a 6.20% increase in the state's own tax revenue, aiming for over Rs 1.18 lakh crore. The growth is primarily driven by two components: State Goods and Services Tax (SGST) and state excise, which are slated to contribute 47.42% and 20.39% of the total tax revenue respectively. Economists caution that such a heavy reliance on excise revenue indicates a lack of big-ticket investments and diverse revenue sources. Concurrently, grants-in-aid from the Union government are projected to more than double during the same fiscal period.

Key Points: West Bengal Budget: 6.2% Tax Revenue Growth Projected

  • 6.20% tax revenue growth projected
  • SGST to contribute 47.42% of tax revenue
  • State excise to contribute 20.39%
  • Grants from Centre to more than double
2 min read

Bengal interim budget pegs 6.20 pc rise in tax revenue, led by SGST, excise

West Bengal's interim budget forecasts a 6.20% rise in tax revenue by 2027, driven significantly by State GST and state excise collections.

"This over-dependence on the state excise component happens in states with a lack of additional sources - City-based economist"

Kolkata, Feb 5

The tax revenue of West Bengal is projected to increase by 6.20 per cent by March 31, 2027, mainly propelled by two of the 12 components, namely State Goods and Services Tax and state excise.

As per the Budget estimates for the financial year 2026-27, the state's own tax revenue is slated to increase to Rs 1,18,668.78 crore, a 6.20 per cent rise over the figure of Rs 1,11,737.13 crore as per the revised estimates for 2025-26.

The SGST component, as per the budget documents for 2026-27, is slated to contribute 47.42 per cent of the total state's own tax revenue collection during the fiscal year under review.

On the other hand, the state excise component is slated to contribute 20.39 per cent of the total state's own tax revenue collection during 2026-27.

As per the Budget estimates for 2026-27, the SGST collection as of March 31, 2027, is slated to increase to Rs 56,279.17 crore from Rs 53,829.37 crore as of March 31, 2026, according to the revised estimates for 2025-26.

Similarly, the state excise collection by March 31, 2027, is slated to rise to Rs 24,200.74 crore as per the Budget estimates for 2026-27, from Rs 22,223.16 crore as of March 31, 2026, as per the revised estimates for 2025-26.

According to economists, while West Bengal is not the only state that depends on state excise to a substantial extent for its own tax revenue generation, such over-dependence on this particular component is not a healthy economic parameter for any state.

"This over-dependence on the state excise component happens in states with a lack of additional sources of the state's own tax revenue generation because of the lack of big-ticket investment," said a city-based economist.

In the case of non-tax revenue, the highest contributing component during 2026-27 will be other non-tax revenue at Rs 3,177.24 crore.

During the financial year 2026-27, grants-in-aid from the Union government are also projected to increase substantially to Rs 47,615.46 crore as per the Budget estimates for 2026-27, from Rs 22,068.85 crore as per the revised estimates for 2025-26.

- IANS

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Reader Comments

P
Priyanka N
Good to see SGST being the major contributor. It shows formalization of the economy is progressing in Bengal. However, the massive jump in grants from the Centre (from ~22k to ~47k crore) is the real story here. That's a huge infusion. Hope it's used for infrastructure and public welfare schemes effectively. 🙏
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Rohit P
As a small business owner in Kolkata, I'm always wary when I hear about tax revenue projections going up. Does this mean more scrutiny and pressure on us? SGST compliance is already a headache. I hope this growth comes from broadening the base, not squeezing existing taxpayers dry.
A
Arun Y
The economist quoted has hit the nail on the head. Over-dependence on excise is a sign of a consumption-driven, not production-driven, economy. Other progressive states are racing ahead with IT and manufacturing. Bengal needs to get its act together on ease of doing business. Jobs should be the priority, not just tax collection.
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Meera T
Numbers look good on paper, but will this translate to better roads, schools, and hospitals in my district? That's what matters to common people like us. The government collects more, we should see more development on the ground. Fingers crossed! 🤞
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David E
Interesting analysis. The projection seems modest but realistic. The doubling of central grants is significant—it could be a game-changer for capital expenditure if managed well. The focus should now be on efficient allocation and preventing leakage of funds.

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