West Bengal continues to depend heavily on transfers from the Centre for its finances, with more than half of its revenue receipts coming through tax devolution and grants, according to SBI Research’s assessment of the FY27 state Budget.
The report says Union tax devolution and central grants together account for 56 per cent of the state’s projected revenue receipts for FY27. Grants alone are expected to contribute 22 per cent.
In contrast, the state’s own tax revenue has remained largely stagnant at around 40-45 per cent of total revenue receipts over the years.
SBI Research also flags weak mobilisation of non-tax revenue. It says receipts from sources such as dividends, fees, interest income and mining continue to contribute only around 3 per cent of overall revenue receipts.
The report argues that improving administrative efficiency and expanding non-tax revenue sources remain critical for strengthening West Bengal’s fiscal position.
It also points to the state’s potential in coal-bed methane and methanol production, saying better utilisation of these resources could help diversify revenue in the future.