Yuva Shakti Bharosa Card at ₹3,000/month for 40 lakh unemployed youth costs West Bengal ₹1,440 crore every year — that is over ₹17,000 crore over the full 5-year scheme duration. Where will this money come from? Can the state's fiscal health sustain this commitment? This is the economics of the scheme that nobody is talking about.
What You'll Learn
The full financial cost of Yuva Shakti — ₹1,440 crore/year and ₹17,280 crore over 5 years
How this compares to West Bengal's existing welfare spending like Lakshmir Bhandar (₹26,000 crore/year)
Where the funding could come from — central devolution, tax revenue, or expenditure reallocation
Whether the scheme is fiscally sustainable given West Bengal's debt-to-GSDP ratio
The Yuva Shakti Bharosa Card scheme promises ₹3,000 per month to unemployed youth aged 21-40 in West Bengal. At an estimated 40 lakh eligible beneficiaries, the annual cost is ₹1,440 crore. Over the full 5-year commitment period, the total expenditure reaches ₹17,280 crore. According to the PRS Legislative Research analysis of the West Bengal Budget 2025-26, the state's cash transfer schemes — primarily Lakshmir Bhandar — already consume over ₹26,000 crore annually, which represents 10% of the state's revenue receipts. Adding Yuva Shakti on top of existing commitments raises serious questions about fiscal sustainability.
Breaking Down the Cost
Metric
Value
Monthly cost per beneficiary
₹3,000
Estimated beneficiaries
40 lakh (4,000,000)
Monthly cost (total)
₹120 crore
Annual cost
₹1,440 crore
5-year total cost
₹17,280 crore
How Does This Compare to Other WB Schemes?
The PRS India report on the West Bengal Budget 2025-26 reveals that Lakshmir Bhandar (now Annapurna Bhandar) costs over ₹26,000 crore annually, up from just 3% of revenue receipts in 2021-22 to an estimated 10% in 2025-26. Yuva Shakti at ₹1,440 crore per year would add approximately 5-6% to the state's cash transfer bill. Combined, Annapurna Bhandar and Yuva Shakti could consume 15-16% of the state's revenue receipts — an extremely high proportion for a state with West Bengal's fiscal constraints.
West Bengal's Fiscal Reality
West Bengal's fiscal deficit for 2025-26 was estimated at 3.6% of GSDP according to the PRS analysis. The state's debt-to-GSDP ratio has been a concern for the Finance Commission. Committed expenditure on salaries, pensions, and interest payments leaves limited room for new welfare schemes. The 16th Finance Commission's evaluation of state finances noted West Bengal's reliance on central devolution and the growing burden of committed expenditure. The question is not whether Yuva Shakti is a good scheme — it is whether the state can afford it alongside existing commitments without cutting capital expenditure or increasing debt.
Conclusion
The Yuva Shakti Bharosa Card scheme costs ₹1,440 crore annually — a significant but not impossible burden for the West Bengal government. The real challenge is cumulative: combined with Annapurna Bhandar's ₹26,000 crore, total cash transfers would exceed 15% of revenue receipts, leaving less for infrastructure and development. The scheme's 5-year commitment of ₹17,280 crore requires either higher tax revenues, increased central devolution, or reallocation from other departments. Beneficiaries should be aware that the scheme's long-term sustainability depends on the state's economic growth and fiscal management.
Last Updated: May 21, 2026 | Source: PRS Legislative Research, West Bengal Budget 2025-26, 16th Finance Commission
Frequently Asked Questions
40 lakh youth × ₹3,000/month = ₹120 crore/month. × 12 months = ₹1,440 crore per year. Over 5 years, the total cost is ₹17,280 crore.
Yuva Shakti at ₹1,440 crore/year is significantly smaller than Annapurna Bhandar/Lakshmir Bhandar which costs over ₹26,000 crore/year. Combined, both schemes would consume 15-16% of the state's revenue receipts.
Funding could come from increased state tax revenues, higher central tax devolution, reallocation from other departments, or additional borrowing. The 16th Finance Commission's recommendations on state borrowing limits will also play a role.
West Bengal's fiscal deficit was 3.6% of GSDP in 2025-26. Adding ₹1,440 crore/year in new expenditure will increase the deficit unless offset by higher revenues or spending cuts elsewhere. The cumulative impact over 5 years is significant.
Committed expenditure on salaries, pensions, and interest payments leaves limited room for new schemes. The PRS India budget analysis shows committed expenditure has been growing faster than revenue, constraining capital expenditure and new initiatives.
The scheme promises 5 years of continuous payments to each beneficiary. If the state's fiscal position worsens, there is a risk of delayed payments, reduced coverage, or scheme modification. However, once a scheme is operational, it is politically difficult to withdraw benefits.
The Central government's Union Budget 2026-27 was called a 'Yuva Shakti-driven Budget' focusing on employment and skilling. However, Yuva Shakti is a West Bengal state scheme, not a central scheme — the central budget's 'yuva shakti' theme refers to different central programs.
If the state's fiscal position cannot sustain the full cost, possible outcomes include capping the number of beneficiaries, reducing the monthly amount, limiting the scheme duration, or phasing it out gradually. Political considerations will heavily influence these decisions.
West Bengal's debt-to-GSDP ratio is one of the highest among Indian states according to Finance Commission evaluations. High debt levels limit the state's capacity to borrow for new schemes without affecting its credit rating and borrowing costs.
Earmarked new taxes (such as increased professional tax or stamp duty), improved GST collection efficiency, rationalisation of existing subsidies, and central devolution increases are potential sources. The state may also seek to retire high-cost debt to free up budgetary space.
