West Bengal's Fiscal Management: Balancing Revenue and Capital Expenditure

West Bengal has successfully maintained tight control over its revenue expenditure growth in early 2025-26, while facing challenges in capital expenditure, as highlighted in a CareEdge Ratings report. The state was notably absent from those with concerning fiscal paths, despite its reduced capital spending.

West Bengal has emerged as a fiscally disciplined state, managing to restrict its revenue expenditure growth in the early months of the 2025-26 fiscal year. CareEdge Ratings noted that the state's expenditure increased by just 3.8 per cent year-on-year, a stark difference from the previous year's growth rate.

According to the analysis, West Bengal accounted for 6.2 per cent of the total revenue expenditure among the 22 states evaluated, reflecting its moderate spending approach. The state notably avoided being listed among those with concerning fiscal outlooks, such as Andhra Pradesh and Himachal Pradesh.

However, the report also highlighted challenges in West Bengal's capital expenditure, which saw a significant 35.1 per cent contraction year-on-year. This places the state at a lower rank in aggregate capital expenditure, amid other states experiencing similar declines.

(With inputs from agencies.)