West Bengal Employees May See Up to 6% DA Increase in Upcoming Budget

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West Bengal Employees May See Up to 6% DA Increase in Upcoming Budget

Synopsis

The West Bengal government is likely to announce a dearness allowance hike of up to six percentage points for its employees in the upcoming budget for 2025-26, as confirmed by Finance Department sources. Despite this increase, the gap with Union government allowances remains significant.

Key Takeaways

  • Potential DA hike for West Bengal employees
  • Current allowance: 14%, Union: 53%
  • Budget session starts on February 9
  • Last full budget before 2026 elections
  • NITI Aayog ranks West Bengal 16th

Kolkata, Jan 29 (NationPress) The West Bengal government employees might witness a potential increase of up to six percentage points in their dearness allowance during the state budget for the financial year 2025-26, which is set to be unveiled next month, according to sources from the state Finance Department.

Currently, officials from the Finance Department are evaluating the highest feasible increase in the dearness allowance that the state can sustain without imposing excessive strain on the state’s finances. Insiders have indicated that a six percentage point increase has been identified as the upper limit in this regard.

Nevertheless, even with this anticipated increase in the dearness allowance for state employees, their allowance will still be notably lower compared to their Union government counterparts.

At present, West Bengal government employees receive a dearness allowance of 14 percent, while Union government employees are entitled to 53 percent.

A legal case concerning this matter has already been filed by a collective association of state government employees and is currently pending in the Supreme Court.

The West Bengal Assembly's budget session is scheduled to commence on February 9, with the state budget proposal for 2025-26 to be presented by Minister of State In Charge of Finance (independent charge) Chandrima Bhattacharya on February 12.

Sources from the finance department have suggested that, given that this will be the last full budget before the 2026 Assembly elections, there could be an increase in funding for various welfare schemes, particularly those aimed at women and youth, in addition to the proposed hike in the dearness allowance for state employees.

Bhattacharya will unveil the budget next month amid the recent release of the 'Fiscal Health Index: 2025' report by NITI Aayog, which highlights West Bengal's challenges in revenue generation, expenditure quality, and debt management.

Among the 18 states evaluated, West Bengal was ranked 16th in the report.