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West Bengal's Debt Spiral: Borrowings Set to Exceed Budget by Rs 42,000 Crore

The West Bengal government is on track to significantly surpass its budgeted market borrowings for the 2025-26 financial year. According to RBI data, the state has already borrowed approximately Rs 78,000 crore in the first nine months and plans to borrow an additional Rs 46,000 crore in the final quarter. This would bring the total borrowing to around Rs 1.24 lakh crore, far exceeding the budgeted figure of roughly Rs 82,000 crore. Consequently, the state's accumulated debt by March 2026 is expected to substantially exceed the projected Rs 7.06 lakh crore.

Key Points: West Bengal to Far Exceed Budgeted Market Borrowings in FY26

  • Borrowing to exceed budget by ~Rs 42,000 crore
  • RBI data shows Rs 78,000 crore already borrowed in 9 months
  • Additional Rs 46,000 crore slated for last quarter
  • Accumulated debt set to surpass Rs 7.06 lakh crore projection
2 min read

West Bengal set to surpass budgeted market borrowings for current fiscal

West Bengal's FY26 market borrowings projected at ~Rs 1.24 lakh crore, far above the budgeted Rs 81,972 crore, raising state debt concerns.

"West Bengal will end up borrowing of around Rs 1,24,000 crore... a figure much higher than the budgeted market borrowing"

Kolkata, Jan 8

The West Bengal government is slated to surpass the budgeted market borrowings for the current financial year 2025-26, as well as its projected accumulated debt by March 31, 2026, as indicated in the trend so far for the first nine months as well as the scheduled borrowings for the remaining three months of the financial year under review.

As per the budget documents for the financial year 2025-26, the state government was slated to borrow a total of Rs 81,972.333 crore from the open market in 2025-26.

However, as per the figures of the Reserve Bank of India (RBI), the West Bengal government had already borrowed around Rs 78,000 crore during the already concluded first nine months of the current financial year from April 1, 2025, to December 31, 2025.

According to the RBI's data, the state government is slated to go for additional borrowing of around Rs 46,000 crore during the remaining three months of the current financial year. Out of that amount, Rs 14,500 crore of market borrowing is slated in January, Rs 14,000 crore in February, and Rs 17,500 crore in March.

Arithmetically, it means during the entire financial year of 2025-26, that is from April 1, 2025 to March 31, 2026, the West Bengal will end up borrowing of around Rs 1,24,000 crore (Rs 79,000 crore in the first nine months plus Rs 46,000 crore in the remaining three months), a figure much higher that the budgeted market borrowing of Rs 81,972.333 crore during the entire financial year under review.

As per the revised estimates for the same fiscal, the total accumulated debt figure for the state government was slated to increase to Rs 7,06,531.61 crore by the end of the fiscal under review on March 31, 2026.

Now, with the total market borrowing figure for 2025-26 being slated to far exceed the budgeted borrowing figure during the financial year under review, the accumulated debt figure is also expected to be more than the projected figure, not only proportionally but substantially.

By the end of the financial year 2010-11, which was the last fiscal under the 34-year-long Left Front rule, the accumulated debt figure of the West Bengal government was little over Rs 1,90,000 crore.

- IANS

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Reader Comments

P
Priyanka N
While the numbers look scary, we must consider the context. Post-pandemic recovery and essential infrastructure development require capital. The key question is the return on investment. If this borrowing funds schools, hospitals, and roads that boost the economy long-term, it might be justified. But the government must communicate this clearly. 🤔
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Rohit P
From ₹1.9 lakh crore in 2011 to a projected over ₹7 lakh crore now? The debt has nearly quadrupled in about 15 years. This is unsustainable by any measure. Future generations in Bengal will be paying off the interest on these loans. Very shortsighted fiscal management.
A
Ananya R
I live in Kolkata and see new flyovers and metro work everywhere. Development costs money. Maybe this borrowing is for these visible projects? But still, exceeding the budget by such a huge margin shows poor planning. They should have been more realistic in the first place.
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Michael C
Interesting data. This seems to be a common challenge for many state governments in India, balancing growth with fiscal prudence. The RBI's role in monitoring this is crucial. Hope the funds are deployed efficiently to avoid a debt trap.
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Kavya N
The article mentions the Left Front's debt in 2011. It's easy to play blame games, but the current administration has a responsibility to manage finances better, regardless of the past. We need a bipartisan approach to tackle this debt monster for the sake of the state. 🙏

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