Kolkata, 10 July (H.S.): In a move aimed at curbing public expenditure, the West Bengal government has revised the financial approval limits for departmental projects, citing mounting fiscal pressure. The decision comes ahead of the upcoming Assembly elections and marks a significant shift in the state's approach to fund management.
A new notification issued by the state secretariat Nabanna on Monday modifies the earlier order from 2023, reducing the maximum financial approval limits across key departments. According to the revised guidelines, major departments such as Public Works, Irrigation, Panchayat & Rural Development, Health & Family Welfare, and Urban Development can now independently approve projects only up to ₹3 crore, down from the previous limit of ₹5 crore — a direct cut of ₹2 crore.
Departments focused on regional development — including North Bengal, Sundarban, and Western region — will now have a reduced cap of ₹1 crore, compared to the earlier ₹3 crore. Other departments such as Housing, MSME, and Information & Cultural Affairs are restricted to ₹75 lakh, while smaller departments have been capped at ₹50 lakh. All project approvals will now require the consent of the concerned departmental advisor. The directive has been issued with the signature of Finance Secretary Prabhat Kumar Mishra.
A senior state official stated that some departments had been undertaking excessive expenditures without adequate consideration of the state’s financial position, and project reviews were often lacking in thoroughness. This prompted the government to adopt a more stringent control mechanism.
The move comes at a time when the state is already under significant financial stress, especially after the central government withheld funding for several national schemes, including the 100 Days Work Programme, PM Awas Yojana, and road construction initiatives. The state has continued these schemes using its own resources.
Additionally, welfare schemes such as Lakshmir Bhandar, Kanyashree, and Swasthya Sathi have further burdened the state exchequer. Chief Minister Mamata Banerjee has repeatedly highlighted the state’s financial distress in public forums, emphasizing the urgent need for greater central support.
Meanwhile, State Minister of Finance Chandrima Bhattacharya is attending the Eastern Zonal Council meeting in Ranchi, Jharkhand, on Thursday. The meeting, chaired by Union Home Minister Amit Shah, is expected to focus on coastal and internal security, Centre-State coordination, and the status of centrally sponsored schemes. It is anticipated that Bhattacharya may also raise concerns regarding withheld central funds and the state’s outstanding dues during the discussions.
Hindusthan Samachar / Satya Prakash Singh