West Bengal’s Rs 8 lakh crore debt raises questions over Rs 3,000 cash handout

West Bengal’s state government has announced a Rs 3,000 cash handout to eligible families amid a debt load of Rs 8 lakh crore. The move has sparked debate over fiscal prudence and the state’s financial strategy. Finance Minister Swapan Dasgupta explained that the handout is part of a targeted welfare initiative aimed at boosting household consumption and supporting vulnerable groups. He emphasized that the scheme is financed through a mix of state reserves and planned borrowing, and is designed to be sustainable within the state’s budget framework. The announcement comes as the state seeks to balance social welfare spending with its long‑term debt obligations.