The state budget announcement and initiative roll-out was held at the Vidhan Sabha, where the TMC government, led by CM Mamata Banerjee, announced the 7th pay commission, which is great news for state government employees.
7th Pay Commission, DA hike announced
Currently, the West Bengal government pays salaries and pensions to its employees as per the recommendations of the 6th Pay Commission. Along with this, the state government announced a 4 per cent increase in Dearness Allowance (DA) for all state government employees and pensioners.
This takes DA to 22 per cent. Earlier, in April 2025, the state had raised DA by 4 per cent, moving it from 14 per cent to 18 per cent.
The same day also saw a major Supreme Court order on pending DA dues. The court ruled that DA is a legally enforceable right and said arrears from 2008 to 2019 must be paid, The Financial Express reported.
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As immediate relief, the Supreme Court directed that at least 25 per cent of the total arrears be cleared by March 6, 2026. The decision comes after years of legal battles by state employees who argued that DA cannot be withheld indefinitely.
Mamata Banerjee lauds West Bengal's fiscal performance
West Bengal Chief Minister Mamata Banerjee pointed to the state's performance and said a Central report shows unemployment in West Bengal has dropped by 45.65 per cent.
"We are grateful to everyone for this. We have also brought more than 1.72 crore people out of poverty," the CM said. She also added that work on the Ghatal Master Plan has already started.
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The West Bengal Budget focuses strongly on welfare. It offers cash support and higher allowances for women, youth, and frontline workers. A major announcement was a Rs. 500 increase in the monthly payment under the 'Lakshmir Bhandar' scheme, starting February this year.
The government has earmarked Rs. 15,000 crore for the scheme. It is seen as a key welfare step, especially for women, who make up nearly half of the state's voters. 'Lakshmir Bhandar' remains one of the flagship programmes of the Trinamool Congress government.