State clears partial fund release under vote-on-account for FY 26-27

Kolkata: Just ahead of the start of the 2026–27 financial year, the state government has approved the partial release of funds to meet administrative and developmental expenditures. According to a recent notification issued by the Finance Department, funds can be disbursed across various sectors at specified rates for the first four months of the upcoming fiscal year under the ‘vote-on-account’ arrangement.

Notably, up to 33 per cent of funds have been sanctioned for schemes like ‘Jai Bangla’ and ‘Lakshmir Bhandar’, though monthly expenditure must be kept within actual requirements.

In the interim budget this year, the monthly allowance under the Lakshmir Bhandar scheme was raised by Rs 500. As a result, women in the general category, who earlier received Rs 1,000 per month, now get Rs 1,500. Similarly, women belonging to the Scheduled Caste and the Scheduled Tribe categories now receive Rs 1,700 per month, up from Rs 1,200. The revised allowance has been effective since February 2026, leading to higher direct transfers into beneficiaries’ bank accounts. An allocation of around Rs 15,000 crore has been earmarked for the scheme in the 2026–27 financial year, underlining its importance.

For Rural Infrastructure Development Fund (RIDF)-related projects, up to 25 per cent of funds have been allowed to be released. Departments have been instructed to strictly follow financial rules and ensure spending only under approved projects.

The Finance Department further stated that the decision has been taken in accordance with the ‘West Bengal Appropriation (Vote-on-Account) Act, 2026’, passed by the state Assembly. The Act came into effect after receiving the Governor’s approval and will be implemented from April 1, 2026.

As per the notification, up to 33 per cent of the total annual allocation will be released for administrative expenses, including salaries, wages, hospital food, medicines, electricity, telephone charges, rent and taxes. The same limit will apply to scholarships and stipends under the Health and Family Welfare Department.

For non-salary expenditure, a maximum of 25 per cent fund release has been permitted, although sectors related to natural disasters have been kept outside this limit. Additionally, up to 33 per cent of funds can be released under ‘Loans and Advances’ to meet salary and wage requirements of employees in public sector units. Funds have also been approved for salaries, pensions and retirement benefits of employees under the Transport Department.

In terms of development expenditure, up to 20 per cent of the total allocation can be spent on state-funded development projects. However, prior approval from the Finance Department will be mandatory for centrally sponsored schemes or projects receiving central assistance.

“This partial fund release at the beginning of the new financial year will help maintain administrative continuity and ensure uninterrupted delivery of essential services,” said a Nabanna official.