Has Bengal's DA Crisis Emerged from Centre's Actions?
Click to start listening
Synopsis
West Bengal Chief Minister Mamata Banerjee has raised concerns about the financial pressures resulting from a Supreme Court order mandating the payment of dearness allowance dues. She attributes this situation to the Union government's actions, highlighting the ongoing struggle for fair compensation for state employees. Explore the implications of this crisis on the state’s economy and governance.
Key Takeaways
- Mamata Banerjee highlights financial strain on West Bengal.
- Supreme Court directed payment of 25% DA dues.
- Union government has halted funding for several projects.
- Current DA rates for state employees are significantly lower than central counterparts.
- Financial implications could lead to a major outflow from the state treasury.
Kolkata, May 20 (NationPress) West Bengal Chief Minister Mamata Banerjee has pointed fingers at the Union government for the impending financial strain on the state's treasury, following a Supreme Court ruling last week that mandated the state to pay 25 percent of the dearness allowance (DA) dues.
During a public event in Jalpaiguri, located in North Bengal, Banerjee asserted that the Union government has halted disbursements for various centrally-sponsored initiatives, forcing the state to use its own funds to continue these projects. This situation has created ongoing financial pressure on the state’s treasury.
“There is still an outstanding amount of Rs 1.75 lakh crore owed by the Union government. We’re funding at least four centrally-sponsored projects with state exchequer money. I cannot conjure up funds out of thin air as depicted in movies. A steady cash flow is essential. Therefore, I urge everyone to comprehend the situation and refrain from criticizing the state government merely to target me,” the Chief Minister remarked.
While she did not explicitly mention the pending DA dues, her comments reflect the state’s ongoing struggle to secure fair dearness allowance payments comparable to those of central and other state government employees.
On Monday, responding to inquiries about the overdue DA payments, Banerjee stated that she would refrain from commenting publicly but would pursue legal avenues regarding the matter.
Currently, West Bengal government employees receive a dearness allowance set at 18 percent, starkly lower than the 55 percent allocated to their counterparts in the central and other state governments.
Initial estimates suggest that the immediate disbursement of 25 percent of the DA arrears could lead to a significant outflow of approximately Rs 12,000 crore from the state treasury.
Point of View
It's clear that the financial dynamics between state and central governments can significantly impact local governance and public sector employees' welfare. The ongoing tussle over dearness allowance highlights the complexities in fiscal relationships and the urgent need for a balanced approach to funding public services.
NationPress
21/09/2025
Frequently Asked Questions
What is the dearness allowance crisis in West Bengal?
The crisis involves a Supreme Court order requiring the West Bengal government to pay 25% of dearness allowance dues, highlighting financial strain due to halted central funds.
Why did Mamata Banerjee blame the Union government?
Banerjee attributed the financial pressures on the state treasury to the Union government's decision to freeze payments for centrally-sponsored schemes.
What are the current dearness allowance rates for West Bengal employees?
West Bengal government employees currently receive a dearness allowance of 18%, in contrast to the 55% received by central government employees.
How much is the pending amount from the Union government?
Banerjee indicated that approximately Rs 1.75 lakh crore is still pending from the Union government.
What are the potential financial implications of the DA payment?
The immediate payment of 25% of the DA arrears could result in an outflow of around Rs 12,000 crore from the state treasury.
