Centre’s fund freeze fails to curb Mamata Banerjee’s populist schemes Premium

West Bengal politics dominated by fund freeze, Mamata Banerjee's government focuses on cash transfer schemes for women and children.

On February 10, when West Bengal Governor C.V. Ananda Bose was addressing the State Assembly, the Bharatiya Janata party MLAs led by Leader of Opposition Suvendu Adhikari took objection to the mention of Jal Swapna scheme. The LOP told journalists that the State government has changed the name of the Central government’s Jal Jeevan Mission to Jal Swapna scheme and that he will write to the concerned Ministry to stop funding the scheme.

The stoppage of funds from the Centre to key schemes has dominated politics of West Bengal over the past several years with funds to MGNREGA being suspended since December 2021. Chief Minister Mamata Banerjee also claims that funds to PM Awaas Yojana and the Pradhan Mantri Gram Sadak Yojana have been stopped.

Over the past few years several delegations of Trinamool Congress leadership have made representations before ministries and even held protests but the Union government has remained defiant alleging widespread corruption in disbursement of schemes including MGNREGA.

In December 2024, Ms. Banerjee announced the Banglar Bari scheme on Tuesday to provide houses for the rural poor in the State. In the first phase the State government has earmarked ₹14,000 crore for 12 lakh beneficiaries and in the Budget for 2025-26 additional ₹9,600 crore for additional 16 lakh beneficiaries. The Budget 2025-26 also saw the allocation of ₹15,000 crore for the Pathashree a scheme for construction of 37,000 km rural roads in the State.

One of the highlights of the West Bengal government Budget for 2025-26 included allocation of ₹200 crore for purchase of smart phones for about 70,000 ASHA (Accredited Social Health Activists) and Anganwadi workers.

While there was no increase in the cash incentives given to women under the Lakshmir Bhandar scheme in the Budget, the Chief Minister said that her government will increase the beneficiaries under the cash incentive scheme whose numbers have climbed 2.21 crore so far. Ms. Banerjee said that her government has so far allocated ₹50,000 crore for Lakshmir Bhandar scheme alone, where (₹1,000 for general and ₹1,200 for reserved category) is given to every women who is less than 60 years.

“Our scheme provides universal coverage, where everyone who applies gets benefit. We do not have any conditions,” Ms. Banerjee said. She highlighted that certain others states have started reducing the number of beneficiaries in the cash incentive schemes. The list of beneficiaries in Kanyashree Prakalpa (scholarship for school going girls) is about one crore and ₹15,000 crore has been allocated so far. Under the Sabuj Sathi scheme (distribution of bicycles to school going students) the number of beneficiaries is 1.26 crore students and allocation of ₹4,600 crore has been made.