CM Mamata urges Finance Commission to raise Bengal's share of Central funds to 50%

West Bengal Chief Minister Mamata Banerjee has formally requested that the state's share of central funds be increased from 41% to 50%. This demand was made during a meeting with representatives of the 16th Finance Commission on Tuesday at Nabanna, the state secretariat. Mamata discussed the state's financial situation, urging a reallocation of resources to better meet the needs of the state, particularly in addressing the aftermath of natural disasters and ongoing development projects.

Mamata pointed out that West Bengal is among the most disaster-prone states in India, frequently impacted by cyclones, floods, and other natural calamities. She specifically mentioned the significant damage caused by cyclones such as Amphan in 2020 and Yaas in 2021, as well as the recurrent flooding resulting from heavy rainfall in neighboring Jharkhand. According to the Chief Minister, these disasters have led to extensive damage in the state, amounting to losses in the crores of rupees. Despite this, Mamata noted that the state has not received sufficient financial assistance from the central government to support relief and recovery efforts.

In addition to disaster-related issues, Mamata raised concerns about the delay in the release of central funds for various state-led development projects. She stated that the state government is owed approximately Rs 1.71 lakh crore for different schemes. This includes funds for infrastructure, social welfare programs, and other developmental initiatives that are critical for the state's growth. The delay in the disbursement of these funds has created challenges in executing these projects, according to the Chief Minister.

Mamata's call for an increased share of central funds aligns with requests made by several other states. Sources from the Finance Commission have indicated that many states are seeking an increase in their share of central funds. While West Bengal is advocating for 50%, some other states have proposed a 45% share. These demands stem from concerns that the current allocation formula, as defined by the 15th Finance Commission, does not sufficiently address the financial needs of states, particularly those with high vulnerability to natural disasters or significant developmental requirements.

The 16th Finance Commission, which is currently reviewing the financial distribution model, is expected to finalize its recommendations in the coming months. The recommendations will determine the allocation of central funds to states for the next period, and could have far-reaching implications for the financial health of state governments, particularly those facing challenges in areas such as disaster recovery and infrastructure development. The outcome of the Commission's review will shape the future fiscal relationship between the central government and the states across India.