Assam Finance Minister Jayanta Malla Baruah presented his maiden Budget for the 2026-27 financial year in the Assam Legislative Assembly, with a total outlay of ₹2.85 lakh crore. The Budget targets a fiscal deficit of 3% of GSDP and aims to close the year with a modest deficit of ₹419 crore, while outlining an ambitious five-year roadmap focused on infrastructure, energy, welfare, and healthcare. Baruah also announced the continuation of all major schemes from the previous term and unveiled 18 flagship initiatives under the “Ashtadash Mukutar Unnoyonee Mala” to transform Assam into a productive and climate-resilient state by 2047.
Budget at a Glance: Key Fiscal Numbers
The Budget estimates total receipts of ₹2,88,309.45 crore against total expenditure of ₹2,85,084.45 crore, including transactions under the Consolidated Fund, Public Account, and Contingency Fund. The Consolidated Fund receipts are estimated at ₹1,51,843.23 crore, while expenditure from this fund is pegged at ₹1,56,714.88 crore. After accounting for an opening deficit of ₹3,644.26 crore, the Budget is projected to close with a deficit of ₹419.26 crore.
State tax revenue has been estimated at ₹36,000.10 crore, while central tax devolution is expected to bring in ₹47,905.24 crore. Public debt for the year is projected at ₹30,000 crore. The Budget also allocates ₹37,769 crore for capital expenditure, a significant increase from ₹2,951 crore in 2015-16, reflecting the government’s focus on asset creation.
The government has set a target of raising the share of own-source revenue from 36% to 50% of total revenue receipts by 2031. Assam’s debt-to-GSDP ratio stood at 24.81% in 2025-26, well below the 32% ceiling prescribed under the Assam Fiscal Responsibility and Budget Management (AFRBM) Act, 2005. The AFRBM Act, enacted in 2005, was amended in 2022 to raise the debt ceiling from 28.50% to 32% of GSDP for five years, providing greater fiscal space for development spending.
Infrastructure Development: Asom Mala 4.0 and Urban Projects
Infrastructure remains the centrepiece of the Budget. The government announced Asom Mala 4.0, under which 800 km of roads will be constructed over the next five years at an estimated cost of ₹10,000 crore. This is the fourth phase of the state’s flagship road infrastructure programme, which has already delivered significant improvements in connectivity across Assam.
In a major urban development push, the Budget allocated ₹2,100 crore for land acquisition for the proposed Aerotropolis around the Lokpriya Gopinath Bordoloi International Airport in Guwahati. The project, which will require approximately 7,000 bighas of land, envisions a satellite city with the airport as its nucleus. A new bridge over the Brahmaputra near the airport is also planned to support urban expansion.
The government also approved the creation of Dibrugarh as Assam’s second State Capital Region (SCR), setting aside ₹500 crore over five years for infrastructure development. A dedicated development authority will oversee the project. Additionally, ₹4,954 crore has been allocated for the Guwahati Ring Road Project, one of the state’s flagship connectivity initiatives.
The Budget also provides ₹3,000 crore for the development of Doloo Greenfield Airport in Silchar and expansion of Rupsi Airport, alongside railway expansion projects to enhance multi-modal connectivity.
Power Sector: A ₹77,353 Crore Investment Pipeline
The Budget unveiled an investment pipeline of ₹77,353 crore for the power sector, aimed at transforming Assam from a power-deficient state into a power-surplus state. The proposed investments span across thermal, hydro, solar, and battery storage projects.
| Project Type | Capacity / Scope | Allocation |
|---|---|---|
| Thermal Power Plant (Bilasipara) | 3,200 MW | ₹40,000 crore |
| Pumped Storage Projects | 4 projects | ₹27,100 crore |
| Small Hydel Projects | 11 projects | ₹2,617 crore |
| Lower Kopili Hydroelectric Project | 120 MW | ₹2,410 crore |
| Solar Projects | Multiple | ₹456 crore |
| Battery Energy Storage Systems | Grid-scale | ₹170 crore |
| Transmission and Evacuation Infrastructure | Statewide | ₹4,600 crore |
The government also allocated ₹2,500 crore to transition Guwahati’s overhead power lines into an underground cable network, improving reliability and aesthetics. The trial commissioning of the 120 MW Lower Kopili Hydroelectric Project is expected soon, adding to the state’s renewable energy capacity.
Tax Relief for Tea Growers and Households
The Budget introduced significant tax relief measures, with the tea sector receiving notable attention. The Agricultural Income Tax exemption limit for small tea growers has been increased fourfold, from ₹2.5 lakh to ₹10 lakh of annual agricultural income. At the same time, the tax has been restored for larger assessees from April 1, 2026, with the additional revenue dedicated exclusively to the welfare of tea garden communities.
To boost value addition and exports, Matcha tea has been included under the eligible category of orthodox and specialty tea. The production subsidy for orthodox and specialty tea has been increased from ₹10 per kg to ₹15 per kg. A new subsidy of ₹3 per kg has been introduced for export-oriented, premium-quality Assam CTC tea that is directly exported through recognised channels, contributing to foreign exchange earnings.
In a move to promote cleaner fuel and reduce household energy costs, the government reduced VAT on piped natural gas (PNG) from 14.5% to 5%. PNG networks are being expanded across Guwahati, Dibrugarh, Jorhat, Tezpur, Darrang, Baksa, Kokrajhar, Nagaon, and the Barak Valley. Additionally, 46 new CNG stations are planned across the state.
The government also exempted stamp duty on loans of up to ₹10 lakh taken by women Self-Help Group (SHG) members and extended a 3% motor vehicle tax subvention for electric vehicle buyers.
Green Cess on Polluting Activities
Guided by the polluter-pays principle, the Budget introduced a Green Cess on identified polluting activities and assets. The cess will be levied on stone crushers, coke-based industries, brick kilns, transfer of second-hand vehicles, commercial extraction of groundwater, and other environmentally sensitive activities. The proceeds from this cess will be used for afforestation, pollution control, biodiversity conservation, climate adaptation, green energy, and water resource management.
Social Welfare and Employment Generation
The government allocated over ₹6,000 crore for flagship welfare schemes, including Orunodoi, pensions, student assistance, farmer support, and tea garden welfare. Welfare payments that were suspended during the election period will resume from August 2026. The Orunodoi scheme, which now reaches nearly 40 lakh families, provides monthly financial assistance to eligible households.
Under the Nijuktir Natun Diganta initiative, the government has targeted creating 2 lakh employment opportunities over the next five years across the broader public sector ecosystem. Recruitments will take place in government departments, universities, medical colleges, statutory bodies, societies, Sixth Schedule councils, and companies with substantial state government shareholding. A task force chaired by the Chief Secretary has been constituted to oversee the recruitment process.
Support for 10 lakh young entrepreneurs has been proposed through financial aid and interest-free loans. Women SHG members will receive collateral-free loans with stamp duty waived on agreements up to ₹10 lakh. However, the distribution of free scooters under the Dr. Banikanta Kakati Merit Award has been discontinued from the next academic year, with funds diverted to strengthening the Nijut Moina and Nijut Babu student stipend schemes.
Social Reform Through Welfare Eligibility
In a significant policy shift, the Budget stipulates that individuals practising polygamy will be barred from receiving state welfare benefits. Rules will be amended to enable the dismissal of government servants found practising polygamy. Convicted criminals will also be disqualified from receiving state welfare benefits.
Healthcare, Education, and Agriculture
Healthcare received a major boost in the Budget. The government proposed creating 33,240 new posts in the health sector and establishing four new medical colleges, moving towards the goal of one medical college in every district. Assam aims to produce 2,300 doctors by 2030 and become the first state to have one doctor in every Health Sub-Centre.
A ₹550-crore Proton Therapy Centre will be set up at Gauhati Medical College and Hospital (GMCH), marking a significant advancement in cancer care infrastructure in the region. The government also plans to establish two modern Integrated Academic Complexes and strengthen healthcare infrastructure across the state, including tea garden hospitals.
Key departmental allocations include:
| Department | Allocation (₹ crore) |
|---|---|
| School Education | 18,869 |
| Public Works Roads | 10,399 |
| Panchayat & Rural Development | 9,171 |
| Home & Political | 7,835 |
| Health & Family Welfare | 4,635 |
| Housing & Urban Affairs | 4,413 |
| Welfare of Bodoland | 4,028 |
| Women and Child Development | 3,800 |
In education, the government targets one university and one engineering college in each district. New initiatives include a homestay policy, foreign language training, and an AVGC-XR talent development programme for animation, gaming, and digital media skills. The government also introduced two weeks of paternity leave for male government employees.
On the agriculture front, the government proposed an irrigation expansion programme involving investments of ₹3,000 to ₹4,000 crore over five years. An amount of ₹200 crore has been allocated this year to prepare a comprehensive irrigation plan aimed at enabling farmers to cultivate their fields for all 12 months of the year. Another ₹100 crore has been set aside for promoting organic certification and agricultural exports.
Key Takeaways
- Assam Finance Minister Jayanta Malla Baruah presented his maiden Budget for FY27 with a total outlay of ₹2.85 lakh crore and a fiscal deficit target of 3% of GSDP.
- The Budget unveiled a ₹77,353 crore investment pipeline for the power sector, including ₹40,000 crore for a 3,200 MW thermal power plant at Bilasipara and ₹27,100 crore for four pumped storage projects.
- Asom Mala 4.0 will construct 800 km of roads over five years at ₹10,000 crore, while ₹2,100 crore was allocated for land acquisition for the Guwahati Aerotropolis project.
- The Agricultural Income Tax exemption limit for small tea growers was raised from ₹2.5 lakh to ₹10 lakh, and VAT on piped natural gas was reduced from 14.5% to 5%.
- The government targets 2 lakh new employment opportunities over five years under the Nijuktir Natun Diganta initiative and allocated over ₹6,000 crore for welfare schemes including Orunodoi.
- A Green Cess was introduced on polluting activities, and individuals practising polygamy will be barred from receiving state welfare benefits.
