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Informist, Wednesday, Jun. 10, 2026

 

NEW DELHI – With a new government taking over in West Bengal, the Centre has drawn up a host of economic development plans for the state, including deploying more credit and boosting financial inclusion schemes, government sources said. "Many more public-sector banks will be taken to the state to spread the flagship (financial) inclusion schemes," the sources said.

 

After a 15-year term, the Mamata Banerjee-led All India Trinamool Congress government was overthrown by the Bharatiya Janata Party last month. The sources said that, like in many other regions, regional rural banks will also be reviewed in West Bengal. So far, in all the reviews of regional rural banks, West Bengal had not participated. "Review will help in identifying the gaps and challenges and prepare them to better respond," one of the sources said.

 

"Credit offtake is doing well and the Centre will ensure credit offtake is robust in West Bengal too, so that the people can feel economic growth reaching the state," a second source said. The Centre will also take steps to help West Bengal deal with its fiscal troubles, including its debt, so that more growth-inducing measures can be taken. "The Centre will assess the financial health of the state and make appropriate recommendations," the source said.

 

West Bengal has also, under the earlier government, raised questions about the lack of funds from the Centre under the Mahatma Gandhi National Rural Employment Guarantee Scheme. "We will see if there are any pending funds and will also review the implementation of VB-GRAM(G) (Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin))," the first source said. 

 

The flagship employment scheme MGNREGA, launched in 2006, provided at least 100 days of guaranteed employment a year for every rural household whose adult members volunteer for unskilled manual work. It was a demand-driven programme and the government had to mandatorily provide funds in case of demand for work. This year, the government rolled out the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin), replacing the earlier scheme and giving 125 days of promised employment compared to 100 days under MGNREGA.

 

The Centre will also review the scheme to provide special assistance to states for capital investment, sources said. The scheme was launched in the Budget for FY22. Under the scheme, the Centre gives funds to states to carry out capital expenditure. The funds are given in the form of 50-year interest-free loans. The scheme to provide special assistance to states for capital investment has multiple parts, with the majority of it being untied or simply based on the 16th Finance Commission's recommendation for states' share in central taxes, while some parts are conditional on the fulfilment of reforms and infrastructure development.  End

 

Reported by Priyasmita Dutta

Edited by Rajeev Pai

 

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