Nabanna going broke over DA dues? Here's how West Bengal is raising money

The state government is in a tough spot, much like the old 'babus' who'd borrow heavily for lavish cat weddings. Nabanna is struggling, facing the Supreme Court's order to pay outstanding DA. How are they finding the money?

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Outstanding DA

The state government has decided to pay 25% of the outstanding DA, effectively bowing to Supreme Court pressure. All processes must be completed by June 27. When will Nabanna pay the first installment of outstanding DA?

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Nabanna

Sources say Nabanna is struggling to pay the outstanding DA to state government employees. How is the state raising funds? 25% of the total outstanding DA requires approximately Rs 10,425 crore.

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The state must pay by June 30

Sources claim they're preparing to borrow from the open market. Finance department sources say the state has no other option amidst this financial crisis. The state is considering borrowing Rs 4,300 crore from the open market. There are no specific rules on how this loan can be used.

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Use funds for investments or salaries

The government can use funds for investments or salaries. The budget targets borrowing Rs 81,972.33 crore. Last year, the state borrowed Rs 80,000 crore. In 2023-24, it borrowed Rs 69,908.98 crore from the open market.

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Supreme Court

The state government informed the Supreme Court that the total outstanding DA is Rs 11,890.18 crore. Pensioners are owed Rs 11,611.45 crore. Teachers and other employees are owed Rs 18,369.32 crore.

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GPF accounts

The total amount exceeds Rs 40,000 crore. WB must pay 25%, around Rs 10,425 crore, by June 30. 25% of the DA for current employees might be deposited into their GPF accounts. Retirees will receive their dues in their pension accounts. This could ease the financial burden.