Why Didn’t West Bengal Government Amend FRBMA Within the Stipulated Time Period?

This study examines as towhy West Bengal (WB) didn’t amend Fiscal Responsibility legislation within the stipulated time period despite suffering from continuous high levels of debt-trap and when such enactment could have provided adequate debt relief to the state. WB was the only non-special category state not to amend the FRBMA. The most important reason for WB not amending FRBMA within the stipulated time, when all other non-special category states enacted the Fiscal Responsibility legislation, has been grounded in the high incidence of non-development revenue expenditure. However, non-amendment of FRBMA by WB within stipulated period of time did not improve the fiscal position of WB state. Rather, large revenue deficits of the state under left front Government have resulted in the emergence of a vicious cycle of deficit, debt and debt service payments to the new Government of WB state leading to the most unsustainable level of debt for WB among all seventeen major Indian states.