The West Bengal government, led by Chief Minister Mamata Banerjee, has announced a 4 per cent hike in dearness allowance (DA) for state government employees as part of the interim budget for the 2026–27 financial year. The announcement was made on Thursday by Finance Minister Chandrima Bhattacharya while presenting the budget in the state assembly, just months ahead of the upcoming Assembly elections.
The interim budget, with a total outlay of ₹4.06 lakh crore, places a strong emphasis on welfare measures and employee benefits. The DA hike is expected to offer partial relief to thousands of government employees who have been demanding an increase to offset rising inflation and living costs. However, the revised DA rate will still remain below that of central government employees.
Alongside the DA increase, the state government has also announced a monthly allowance hike of ₹1,000 for ASHA and Anganwadi workers. These frontline workers play a crucial role in delivering healthcare and nutrition services at the grassroots level, particularly in rural and semi-urban areas. The decision has been seen as an acknowledgment of their continued service and long-standing demands for better compensation.
In another key announcement, the government introduced a new welfare scheme titled Banglar Yuva Sathi, aimed at supporting unemployed youth across the state. Under the proposed scheme, unemployed individuals aged between 21 and 40 years will receive a monthly allowance of ₹1,500 until they secure employment or for a maximum period of five years. The scheme is scheduled to be launched on 15 August, provided the Trinamool Congress returns to power.
The interim budget also proposed a ₹1,000 monthly pay hike for civic volunteers and Green Police personnel. To support this initiative, the government has allocated ₹150 crore, highlighting its focus on strengthening community-level public services and law-and-order support systems.
Earlier in the day, the Supreme Court directed the West Bengal government to release dearness allowance arrears for its employees for the period between 2008 and 2019. The apex court ordered the state to pay 25 per cent of the outstanding DA dues by 6 March, stating that dearness allowance is a legally enforceable right of government employees.
The Supreme Court observed that DA is not an additional benefit but an essential mechanism to protect employees from the adverse impact of rising prices and to ensure a minimum standard of living. The case had originated after state government employees approached the Calcutta High Court, seeking DA at par with central government employees along with pending arrears.
With the interim budget focusing heavily on employee welfare, youth support, and grassroots workers, the Mamata Banerjee government appears to be positioning its economic agenda around social security and public sector support ahead of the crucial state elections.