How is Bengal Planning to Fund 25% DA Arrears as Ordered by the Supreme Court?
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Synopsis
In a crucial move, the West Bengal finance department is strategizing to fund 25% of the pending dearness allowance arrears for state employees, following a Supreme Court ruling. This financial obligation, estimated at around Rs 12,000 crore, poses significant challenges, especially with upcoming elections on the horizon. Will the government find a viable solution in time?
Key Takeaways
- The West Bengal finance department is exploring funding options for DA arrears.
- The Supreme Court mandates a 25% payment within four weeks.
- Estimated financial burden is around Rs 12,000 crore.
- Internal reallocations may affect welfare programs.
- Political implications are significant with elections approaching.
Kolkata, May 17 (NationPress) The finance department of West Bengal is actively seeking ways to secure funding for the disbursement of 25 percent of the outstanding dearness allowance (DA) arrears owed to state government employees, as mandated by a Supreme Court ruling.
On Friday, the Supreme Court instructed the West Bengal government to settle 25 percent of the pending dearness allowance dues within the next four weeks.
Sources from the finance department revealed that in light of the apex court’s directive, the state is left with little choice but to fulfill the payment within the stipulated time. With limited options for new funding, the department is contemplating internal reallocations, primarily by reducing budgetary allocations across selected areas.
"The most viable option seems to be cutting funds designated for certain welfare and assistance programs and reallocating that amount to the DA payment fund," a senior official from the department stated anonymously.
Legal analysts noted that the state possesses minimal legal options. The only conceivable path is to seek a different division bench of the Supreme Court to contest the ruling.
However, the likelihood of such a plea being considered is uncertain, as the order originates from a bench of equal authority.
The financial implications of settling 25 percent of the DA arrears within the next four weeks is projected to be around Rs 12,000 crore, or slightly less.
Nevertheless, officials from the finance department express doubts about the feasibility of a proposal to reduce funding for welfare schemes, especially with critical assembly elections approaching next year.
Currently, there has been no official comment from the state government, including from Chief Minister Mamata Banerjee or Minister of State for Finance (Independent Charge) Chandrima Bhattacharya.
When contacted, Bhattacharya indicated that only the Chief Minister would address the Supreme Court directive.
Point of View
I understand the complexities surrounding the funding of DA arrears in West Bengal. The government's urgency to comply with the Supreme Court directive reflects a commitment to employee welfare. However, balancing financial realities with political pressures, especially ahead of upcoming elections, will require astute decision-making. NationPress will continue to monitor this situation closely.
NationPress
08/09/2025
Frequently Asked Questions
What is the Supreme Court's directive regarding DA arrears?
The Supreme Court has ordered the West Bengal government to clear 25% of the pending dearness allowance arrears within four weeks.
How much is the estimated financial burden for the state?
The financial burden for the state to pay 25% of the DA arrears is estimated to be around Rs 12,000 crore.
What strategies is the finance department considering?
The finance department is considering internal reallocations, primarily by cutting funds from certain welfare and assistance programs.
Will the state government issue an official statement?
As of now, no official statement has been released by the state government regarding the Supreme Court directive.
What challenges does the government face in funding DA arrears?
The government faces challenges in obtaining fresh funding and may encounter political resistance to cutting welfare program budgets.
