The Big Freeze: Centre Blocks ₹1.75 Lakh Crore in Central Funds
In a political showdown just months before the West Bengal Assembly polls, Chief Minister Mamata Banerjee finds herself on the defensive.
The Central Government has blocked nearly ₹1.75 lakh crore in development funds, citing serious discrepancies in the implementation of flagship welfare schemes — from MNREGA to Pradhan Mantri Awas Yojana (PMAY).
Banerjee alleges “political vendetta,” claiming the Centre is punishing Bengal’s people for voting differently, while the BJP accuses her administration of massive fund diversion and corruption.
Audit Trail: CAG Exposes Alarming Fiscal Irregularities
A CAG report has placed West Bengal among India’s most debt-stressed states, with a debt-to-GSDP ratio of 34%, second only to Punjab.
Audit inspections uncovered fake job cards, duplicate beneficiaries, and misuse of MNREGA and housing funds.
Key Schemes Under Scrutiny:
👉MNREGA: Fake beneficiaries, non-existent job cards
👉PMAY: Allotments to TMC functionaries owning luxury homes
👉PMGSY & SSA: Diversion of central allocations to other departments
The Centre alleges that portions of these funds were rerouted into the Chief Minister’s Relief Fund, violating the mandatory 60:40 Centre-State funding ratio — effectively placing those funds under state discretionary control.
From Kolkata High Court to Delhi: Legal Dead End for TMC
Despite multiple petitions in the Calcutta High Court, the state failed to convince judges of compliance.
Central affidavits detailed systematic misuse and misreporting of expenditure, weakening TMC’s case.
Legal experts suggest Mamata’s options are narrowing, as her government’s defense risks collapsing under documented audit evidence. A move to the Supreme Court could backfire politically if the Centre produces detailed reports already on record.
The PMAY Scandal: Mansions on Paper, Mud Huts in Reality
Field visits by central verification teams in the Sundarbans revealed a startling pattern:
👉TMC panchayat leaders with multi-storey homes received housing funds meant for the poor.
👉Needy villagers were either excluded or coerced into political allegiance for approval.
This ‘cash-for-card’ model became a mini-economy for TMC’s local machinery — ensuring loyalty through MNREGA wages and PMAY grants. Once the funds were frozen, that chain collapsed, triggering unrest within the TMC’s grassroots base.
Politics of Debt: Bengal’s Empty Treasury Before Elections
Economists say the West Bengal treasury is running dry, forcing the government to delay salary payments and stall welfare schemes.
Mamata Banerjee’s recent attempts to announce new job vacancies and disburse payments to 36,000 employees — many under legal dispute — were blocked after scrutiny from the Election Commission and the courts.
Even as Banerjee accuses the BJP of “financial strangulation,” insiders admit the state’s fiscal mismanagement has deepened over the years, with poor compliance and opaque accounting practices.
Election Heat: BJP Senses Opportunity
The BJP, buoyed by recent organizational successes in other states, has turned Bengal into its next target. Party strategists are framing the narrative around “corruption vs accountability”, promising that “every rupee will reach the rightful beneficiary.”
Meanwhile, RSS affiliates and Hindu organizations have ramped up grassroots campaigns to reclaim the rural narrative that TMC once dominated.
Political observers say Banerjee’s once formidable ‘Bengali pride’ plank may no longer resonate if her welfare image collapses under corruption charges.
Federalism on Trial
This confrontation is not just about Bengal — it’s about India’s federal balance of power.
Where does financial accountability end and political control begin?
The outcome of this battle will define the future of Centre-State relations and perhaps, the shape of Indian democracy itself.
Discover more from DailyDozes NEWSPAPER
Subscribe to get the latest posts sent to your email.