West Bengal budget: Tax revenue to rise 11.26 pc, propelled by SGST and state excise

Kolkata, Feb 12 (IANS) The tax revenue of West Bengal is projected to increase by 11.26 per cent by March 31, 2026, mainly propelled by only two of the 12 components which are State Goods and Service Tax (SGST) and state excise.

As per the budget estimates for the financial year of 2025-26, the state’s own tax revenue is slated to increase to Rs 1,12,543.80 crore, 11.26 per cent rise over the figure of Rs 99,863.16 crore as per the revised estimates for 2024-25.

The SGST component, as per the budget documents for 2025-26, is slated to contribute 44.22 per cent of the total state’s own tax revenue collection during the fiscal under review.

On the other hand, the state excise component is slated to contribute 20.03 per cent of the total state’s own tax revenue collection during 2024-26.

As per the budget estimates figure for 2025-26, the SGST collection as of March 31, 2026, is slated to increase to Rs 49,771.98 crore from Rs 45,872.52 crore as of March 31, 2025, according to the revised estimates for 2024.25.

Similarly, the state excise collection by March 31, 2026, is slated to rise to Rs 22,550.33 crore as per the budget estimates for 2025-26, from the figure of Rs 20,444.45 crore as of March 31, 2025, as per the revised estimates for 2024-25.

According to economists, while West Bengal is not the only state that depends on the state excise to a substantial extent for its own tax revenue generation, such an over-dependence on this particular component is not a healthy economic parameter for any state.

In the case of non-tax revenue, the highest contributing component during 2025-26 will be interest receipts at Rs 4,626.27 crore, followed by other non-tax revenue at Rs 4,231.06 crore.

–IANS

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