The Union Cabinet of India approved a Package of 8750 crore for West Bengal

The cabinet committee on economic affairs on 7 December 2011 approved the special package of 8750 crore for West Bengal from the Backward Area Grant Fund. The fund will be used for development of backward region in the state.

The package is proposed to be implemented in the state's backward areas affected by naxalism, including Jungle Mahal area, which comprises West Midnapore, Purulia and Bankura.

 The package is expected to cover aspects like rural employment, safe drinking water, watershed and rural road construction. The state has been facing financial crunch as its debt stock, according to the state finances report of the Reserve Bank, was 1.9 lakh crore rupees. 

 
West Bengal had the highest fiscal deficit in 2010-11 among non-special category states, at 4.6 per cent of gross state domestic product (GSDP). Punjab at 3.6 per cent was ranked fifth and Kerala at 3.5 per cent was the sixth.