Kolkata, Feb 12 (PTI) West Bengal Finance Minister Chandrima Bhattacharya on Wednesday presented a Rs 3.89-lakh crore budget for 2025-26 with a significant focus on social welfare, and announced a four per cent hike in dearness allowance (DA) for state government employees.

The government also unveiled a series of infrastructure and agricultural development projects in its budget, allocating significant funds for rural connectivity, river erosion control, and agrarian support initiatives.

Bhattacharya announced that the state government would increase the Dearness Allowance (DA) by four per cent from April 1, 2025.

This would bring the total DA to 18 per cent for state government employees, providing much-needed relief to them, amid rising inflation.

The move is aimed at addressing ongoing concerns raised by government employees who have been agitating for better compensation.

The additional DA hike comes as part of the government’s efforts to improve the financial status of its workforce and ensure fair compensation for their services.

"With this four per cent increase in DA, we are reaffirming our commitment to the welfare of our employees," Bhattacharya said, underlining the state's focus on the well-being of its workforce.

The announcement is expected to ease the financial strain on thousands of government employees across various departments, strengthening the relationship between the state administration and its employees.

A major highlight of the last full-fledged budget of the Mamata Banerjee government before the 2026 assembly elections, is the Rs 1,500 crore allocation for the improvement of rural roads across the state, This is aimed at enhancing connectivity and boosting economic activity in remote areas.

In a bid to address the persistent issue of river erosion, the government set aside Rs 200 crore, which would provide much-needed relief to vulnerable riverine communities.

Further strengthening its focus on infrastructure, the government sanctioned Rs 500 crore for the construction of a 4.75 km-long bridge over the Ganga river at Gangasagar, which is expected to facilitate smooth access for pilgrims and boost local economies.

Under the 'Banglar Bari' project, the state plans to construct 16 lakh new houses in the upcoming financial year, and a proposal of Rs 9,600 crore has been allocated for the initiative.

In a bid to enhance housing support for the underprivileged, the state had allocated Rs 14,000 under the scheme last year.

This initiative aims to provide financial assistance for the construction of homes for the poor and marginalised sections of society. PTI BSM/ DC PNT BDC

Dearness Allowance increase announced, raising state employee compensation and expanding welfare and infrastructure allocations and housing programs. The state budget raises Dearness Allowance (DA) for state government employees to improve compensation amid inflation and address pay demands, and directs significant allocations to rural road improvements, river erosion control, construction of a major bridge, a large-scale housing initiative targeting low-income households, and agrarian support measures to bolster rural economies.