West Bengal's Pre-Election Budget Unveils New Youth Scheme and Expands Welfare Programs
In a significant move ahead of the upcoming state assembly elections, the West Bengal government presented its final vote-on-account budget on Thursday, introducing the Banglar Yuba-Sathi scheme for unemployed youth and enhancing several existing social welfare initiatives. State Finance Minister Chandrima Bhattacharya outlined the interim financial statement, which has been widely viewed as a pre-poll outreach to various voter segments.
New Youth Assistance Program Targets Unemployment
The centerpiece of the budget is the Banglar Yuba-Sathi scheme, specifically designed for the state's unemployed youth population. Scheduled to launch on August 15 this year, the program promises monthly financial assistance of Rs 1,500 to individuals aged between 21 and 40 years who have passed the Madhyamik examination but remain unemployed.
Eligibility criteria stipulate that beneficiaries must not be covered by any other social security scheme beyond educational benefits or scholarships. The assistance will continue until recipients secure employment or for a maximum period of five years, whichever occurs earlier. Finance Minister Bhattacharya announced that Rs 5,000 crore has been allocated for this initiative in the 2026-27 financial year.
Enhanced Benefits for Women and Frontline Workers
The budget also substantially increased payouts for the flagship Lakshmir Bhandar scheme, which was originally introduced just before the 2021 assembly elections. The monthly assistance for women beneficiaries has been raised from Rs 1,000 to Rs 1,500, with additional benefits specifically earmarked for Scheduled Castes and Scheduled Tribes.
This enhanced scheme, now in its fifth year, currently benefits more than 2.2 crore women across West Bengal and is expected to add approximately 20 lakh new beneficiaries following the increased allocation.
Substantial improvements were also announced for frontline workers:
- Monthly honorariums for ASHA workers, anganwadi workers, para-teachers, and civic volunteers have been increased by Rs 1,000
- ASHA workers will now receive 180 days of maternity leave
- Next of kin of ASHA workers will receive a one-time compensation of Rs 5 lakh if the worker dies before reaching 60 years of age
- Similar benefits have been extended to anganwadi workers, helpers, and para-teachers
Additional Provisions for State Employees and Rural Employment
Full-time state government employees received positive news with a 4% hike in dearness allowance, along with the promise of implementing the Seventh Finance Commission recommendations. The vote-on-account also included symbolic political gestures, notably renaming the Karmashree scheme as "Mahatma-Shree" and increasing the minimum number of workdays from 75 to 100.
This latter move is seen as a direct response to the Trinamool Congress's opposition to the central government's decision to rename the Mahatma Gandhi National Rural Employment Guarantee Scheme, highlighting the political undertones of the pre-election budget.
Political Reactions and Fiscal Implications
Following the budget presentation, Chief Minister Mamata Banerjee praised the vote-on-account as "pro-people" and emphasized its fiscal discipline, contrasting it with what she described as the "directionless and rudderless" Union Budget. She revealed that with the introduction of new projects, West Bengal's social welfare schemes have now crossed the century mark, increasing from 94 to over 100 initiatives.
However, the budget faced criticism from opposition quarters. Economist and BJP MLA Ashok Lahiri characterized the interim financial statement as appearing "more like the Trinamool manifesto" and questioned how the government planned to fund the enhanced dearness allowance and other increased expenditures.
The comprehensive budget, covering virtually every section of society, sets the stage for the upcoming assembly elections while attempting to address key concerns around unemployment, women's welfare, and worker compensation in India's eastern state.
