West Bengal Budget 2026: State Government Announces Landmark 20% DA Hike, 1 Lakh Vacancies
KOLKATA — In its first full state budget presented on June 22, 2026, the newly formed West Bengal government unveiled a sweeping array of employment, welfare, and infrastructure measures. The headline of the ₹4,38,775.29 crore budget is a massive 20 percentage point increase in Dearness Allowance (DA) for state government employees and Dearness Relief (DR) for pensioners.
Presented in the State Legislative Assembly by Finance Minister Swapan Dasgupta alongside Chief Minister Suvendu Adhikari, the budget marks a drastic policy shift aimed at ending a years-long standoff over pay parity and rejuvenating the state’s fiscal and economic infrastructure.
Narrowing the DA Gap: Key Takeaways
The 20% DA hike addresses a long-standing grievance of West Bengal state employees, who had been protesting for years over the widening pay disparity between state scales and the Central Government’s 7th Pay Commission structure.
| Metric | Details |
| DA Increase | 20 percentage points |
| New Total DA Rate | 38% of basic salary |
| Effective Date | October 1, 2026 |
| Beneficiaries | State government employees and pensioners |
| Impact on Pay Gap | Narrows the deficit with central employees by 22 percentage points |
“Our objective is to restore public confidence in governance and establish a corruption-free administrative structure,” Finance Minister Dasgupta stated, noting that the administration is also working in parallel on a newly approved 7th State Pay Commission to restructure basic salaries completely.
1 Lakh Government Jobs and Welfare Expansion
Beyond the DA announcement, the 2026-27 fiscal roadmap focuses heavily on massive employment drives and decentralized welfare delivery, attempting to stabilize an economy burdened by an inherited debt of ₹8.15 lakh crore.
1. Phased Recruitment Drive
The government announced plans to fill 1,00,000 vacant government posts in phases during the financial year. The immediate layout includes:
- 50,000 positions across teaching and non-teaching roles in state-run schools.
- 20,000 positions within the West Bengal Police force.
- Key Reservations: 33% of these fresh vacancies will be legally reserved for women, and a 10% quota has been introduced for eligible Agniveers.
2. Grassroots Honorarium Hikes
To provide relief to frontline and community workers, monthly salaries and honorariums are set to increase substantially starting August 2026:
- ASHA and Anganwadi workers: Monthly hike of ₹5,000.
- Civic Volunteers, Green Police, and NVF workers: Monthly hike of ₹2,000.
3. Revamped Social Security Schemes
The state has allocated ₹36,000 crore to the Annapurna Yojana, a direct cash transfer scheme providing financial aid to women aged 25 to 60. Additionally, ₹550 crore has been earmarked to give women free travel on state buses via an upcoming “Pink Card” system. Unemployed graduates between 21 and 45 will receive up to ₹3,000 per month under the new Bharosa Karmasathi scheme.
Infrastructure and Regional Upgrades
Seeking to position West Bengal within India’s broader “Viksit Bharat” vision, the budget commits heavy funds toward long-delayed public works and connectivity projects:
Ghatal Master Plan: An initial allocation of ₹1,200 crore has been deployed to jumpstart the critical, long-delayed anti-flood initiative in collaboration with Central agencies.
Industrial Stimulus: A dedicated fund of ₹5,000 crore has been set up for industrial incentives, exempting projects investing over ₹100 crore from certain local-level clearances.
Connectivity & Metro Expansion: Feasibility studies will commence for Metro Rail expansions in Durgapur, Asansol, and Siliguri, alongside a new elevated urban corridor between Chingrighata and New Town in Kolkata.
Educational Institutions: Proposal to establish a Tribal University in Jhargram, alongside efforts to secure an IIT and an IIM campus setup specifically in North Bengal.
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