Lok Sabha Question No. 2342 (UNSTARRED), answered on 2025-08-04
Subject: Funds for Central Sponsored Schemes in West Bengal
Ministry: FINANCE
Asked by: Smt. Rachna Banerjee

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF EXPENDITURE

## LOK SABHA

## UNSTARRED QUESTION NO. 2342

## TO BE ANSWERED ON MONDAY, 4 th  AUGUST, 2025 SRAVANA 13, 1947 (SAKA)

## FUNDS FOR CENTRAL SPONSORED SCHEMES IN WEST BENGAL

## 2342.   Smt. Rachna Banerjee

Will the Minister of Finance be pleased to state:

- (a) whether  the  Government  is  aware  regarding  issue  of  the  timely  release  of  funds  for centrally  sponsored  schemes  in  West  Bengal  i.e.  MGNREGA,  Pradhan  Mantri  Awas Yojana, etc.;
- (b) the  steps  taken/to  be  taken  by  the  Government  to  ensure  transparent,  timely  and uninterrupted disbursement of these funds;
- (c) the  financial  incentives,  tax  benefits  or  special  package  targeted  by  the  Government  to attract large-scale industrial investment to West Bengal; and
- (d) the manner in which it will facilitate a more conducive business environment in the State?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI PANKAJ CHAUDHARY)

(a)  and  (b)  In  the  last  three  years  i.e.  from  financial  year  (FY)  2022-23  to  FY  2024-25,  an amount  of  Rs.  33,543  crore  has  been  released  to  West  Bengal  as  central  share  of  Centrally Sponsored Schemes (CSS). The release of central share of a CSS to a state is dependent upon compliance of  the  conditions  stipulated  in  the  extant  scheme  guidelines  and  utilization  of  the funds released earlier.

Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS) is a  demand  -  driven  wage  employment  scheme.  As  per  the  provisions  of  the  Mahatma  Gandhi NREG Act, 2005, it is the responsibility  of  the State  Government  to  ensure transparency  and accountability  in  the  implementation  of  the  scheme.  In  the  case  of  the  State  of  West  Bengal, based  on  central  teams'  inspection  reports  highlighting  the  implementation  issues  such  as financial  misappropriation,  execution  of  non-permissible  activities,  splitting  of  works,  lack  of transparency & accountability, the Ministry of Rural Development sent several communications to the State for rectification of the same. However, no noticeable improvements were observed. Consequently,  release  of  funds  to  the  State  of  West  Bengal  has  been  stopped  since  March  9, 2022, under Section 27 of the Act due to non- compliance with Central Government directives.

Further,  Pradhan  Mantri  Awaas  Yojana-Gramin  (PMAY-G) was implemented w.e.f. 1st April 2016  to  provide  assistance  to  eligible  rural  households  for  construction  of  Pucca  houses  with basic  amenities  to  achieve  the  objective  of  "Housing  for  All"  in  rural  areas.  The  Ministry  of Rural Development has allocated total targets of 45,69,423 to the state and state has sanctioned 45,69,032 houses and 34,19,432 houses have been completed as on date. The Ministry of Rural Development has already released ₹25,798 crore as central share since FY 2016-17 till FY 202122 to the State of West Bengal for implementation of the PMAY-G. However, post allocation of target to the State from the finalised Awaas Plus 2018 survey lists in November 2022, complaints regarding  irregularities  in  implementation  of  PMAY-G  were received.  These complaints  were verified through National Level Monitoring (NLM) Teams and Senior Officers' Teams.

No Central share of funds have been released to the State of West Bengal under the PMAY-G, during FY 2022-23 to FY 2025-26 (till date) for targets of FY 2022-23 from the finalized Awaas Plus 2018 survey lists due to non-submission of satisfactory Action Taken Reports (ATR) on the observations  of  the  NLM  teams  and  Senior  Officers'  Teams  of  the  Ministry  of  Rural Development.

(c)  and  (d)  Besides  the  funds  released  under  CSS,  the  Union  Government  also  provides substantial  financial  resources  for  capital  expenditure  /  investment  to  create  more  conducive business environment to all states including State Government of West Bengal under the Scheme for Special Assistance to States for Capital Expenditure/Investment.  An amount of Rs. 23,073 crore  has  been  released  to  West  Bengal  since  inception  of  the  scheme  in  FY  2020-21  to  FY 2025-26 (till 28th July, 2025).

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