West Bengal Budget: The government led by Chief Minister Mamata Banerjee has presented an interim budget of ₹4.06 lakh crore for the financial year 2026-27. Presented in the Assembly by Finance Minister Chandrima Bhattacharya on February 5, 2026, this budget seeks to address every segment of society, keeping the upcoming elections in mind.

This budget primarily focuses on improving the economic condition of women, supporting educated unemployed youth, and taking concrete steps to address long-pending allowances for government employees.

₹500 Increase in Lakshmi Bhandaar Scheme

The most significant announcement in the budget concerns the state’s most popular ‘Lakshmi Bhandaar’ scheme. The government has directly increased the monthly financial assistance provided under this scheme by ₹500, effective February 2026.

Following this change, women from the general category will now receive ₹1,500 per month instead of ₹1,000, while women from the Scheduled Caste and Scheduled Tribe categories will receive ₹1,700 instead of ₹1,200 directly into their bank accounts. This scheme is only for women who are permanent residents of West Bengal, aged between 25 and 60, and whose families are not covered by government jobs or pensions.

Yuva Sathi Allowance for Unemployed Youth

The government has proposed a new welfare scheme for educated unemployed youth, under which eligible youth will receive an unemployment allowance of ₹1,500 per month. This assistance will be available for a maximum of five years so that young people can focus on their job search or skill development.

The West Bengal government has also created a safety net for app-based delivery partners and drivers, i.e., gig workers. These temporary workers will now be covered under the “Swasthya Sathi” scheme, which will provide them and their families with cashless health insurance up to ₹5 lakh.

DA Increase for Government Employees

A 4 percent increase in dearness allowance (DA) for state government employees has been announced in the budget, providing relief to millions of employees and pensioners. Meanwhile, in a landmark decision, the Supreme Court has directed the state government to immediately begin disbursing all DA arrears between 2008 and 2019.

The court has clearly ordered that at least 25 percent of the total arrears must reach employees’ accounts by March 6, 2026. Additionally, a provision has been made to increase the monthly allowance of ASHA and Anganwadi workers, who work at the grassroots level, by ₹1,000.

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