By implementing central schemes, Bengal to unlock Rs 40,000 crore for development
Times of India | 20 June 2026
Kolkata: State govt’s decision to implement various central schemes in Bengal is set to unlock around Rs 40,000 crore for development projects across the state, said official sources. Funds earmarked for multiple programmes during the previous Trinamool govt’s tenure are now expected to be channelled into infrastructure creation and other developmental activities, sources said.
Sources added that the state budget, to be presented on Monday, is expected to contain announcements on the utilisation of funds for accelerating infrastructure development and boosting economic growth of Bengal.
Centre halted release of funds earmarked for the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) in Bengal in 2022 over allegations of financial misappropriation, ineligible beneficiary selection, and violations of central guidelines. Following the suspension of central assistance, the previous govt had launched the state’s own ‘Banglar Bari’ scheme and released Rs 14,400 crore.
“Centre has recently approved the construction of 10 lakh houses in Bengal under PMAY-G. Hence, Rs 19,638 crore, which was earmarked for the second phase of Banglar Bari in the interim budget, would not be released and this fund could be channelled into other developmental activities,” a senior official said.
Similarly, following the suspension of fund allocation in MGNREGS, the previous state govt had launched its own ‘Karmashree’ initiative and provided Rs 4,051 crore in wages during the last fiscal. Karmashree has now been discontinued and the state can utilise this fund for purposes like infrastructure development.
The new BJP govt in the state has decided to discontinue the ‘Krishak Bandhu’ scheme launched by the previous TMC govt and would bring all beneficiaries under the centrally funded PM-Kisan Samman Nidhi scheme. “It will save a huge amount for the state exchequer. During 2025-26, the state provided Rs 2,930 crore under Krishak Bandhu,” another govt official stated.
Instead of implementing the Pradhan Mantri Fasal Bima Yojana (PMFBY), the previous Bengal govt had launched its own Bangla Shasya Bima scheme. PM Narendra Modi will launch PMFBY in Bengal on Saturday. State govt, in turn, will unblock funds allocated for the Bangla Shasya Bima scheme.
State govt has also decided to implement all applicable central schemes for road infrastructure development across Bengal, replacing the Pathashree-Rastashree scheme. “In the interim budget, Rs 9,488 crore was proposed for the Pathashree-Rastashree scheme in 2026-27. Discontinuing the scheme will free up a substantial amount of money,” an official said.
Discontinuation of Swasthya Sathi is also expected to significantly reduce the financial burden on the state exchequer.