Kolkata, Feb 12 (PTI) West Bengal has pegged its fiscal deficit at 3.6 per cent of its Gross State Domestic Product (GSDP) for the 2025-26 budget, which is lower than the Centre's 4.4 per cent fiscal deficit, principal chief advisor to chief minister Mamata Banerjee, Amit Mitra, said on Wednesday.

He added that the state's nominal GDP is projected to grow by 11.94 per cent in 2025-26, and development expenditure will increase by 16.17 per cent, while capital expenditure is set to rise by 10.7 per cent.

Banerjee emphasised the significant debt burden carried by the state, which she attributed to the previous government.

She said, "Over Rs 80,000 crore has been allocated for loan repayment," and criticised the Centre for halting fund releases under key welfare schemes such as MNREGA and housing, suggesting that if the state had received these funds, it could have allocated more resources for social welfare and housing projects.

She also pointed out that the budget has earmarked Rs 24,000 crore for housing benefits.

The total debt of West Bengal is projected to reach Rs 7.71 lakh-crore in 2025-26, up 9.2 per cent from Rs 7.06 lakh-crore in 2024-25. However, Mitra downplayed concerns, asserting that the state's per capita debt remains better than the national average.

Meanwhile, state tax revenue is expected to grow 12.7 per cent to Rs 1,12,543 crore in 2025-26, compared to Rs 99,863 crore in the previous fiscal. PTI BSM/dc MNB

Fiscal deficit peg set below central level, accompanied by higher development and capital spending and debt servicing focus. West Bengal's 2025-26 budget pegs a fiscal deficit below the central level, projects nominal GSDP growth, and increases development and capital expenditure while allocating funds for loan repayment and housing. The budget forecasts a rise in total state debt but contends per capita debt compares favorably to the national average, and relies on projected growth in state tax revenue; it also identifies interrupted central transfers under welfare schemes as limiting the state's fiscal flexibility.