Assam Unveils Rs 2.85 Lakh-Crore Budget With Tax Relief, Growth Push
The 2026-27 Budget proposes higher tax exemption for small tea growers, lower VAT on piped natural gas and a fiscal deficit target of 3% of GSDP.
The Assam government on Friday presented a Rs 2,85,084-crore Budget for the 2026-27 financial year, focusing on economic growth, fiscal discipline and welfare measures, including tax relief for small tea growers and lower VAT on piped natural gas.
Presenting his maiden Budget, Finance Minister Jayanta Malla Baruah said the government would continue all major welfare schemes launched over the past five years while targeting a Budget deficit of Rs 419 crore, equivalent to 3 per cent of the state's projected Gross State Domestic Product (GSDP).
The Budget estimates receipts of Rs 1,51,843.23 crore under the Consolidated Fund of the State. Including receipts under the Public Account and Contingency Fund, total receipts are estimated at Rs 2,88,309.45 crore. Total expenditure, including Public Account and Contingency Fund spending, is projected at Rs 2,85,084.45 crore.
Chief Minister Himanta Biswa Sarma said Assam's Budget has nearly tripled in recent years, reflecting the state's improving economic indicators and stronger public finances.
"Our Budget size has increased three-fold... and all economic indicators have a positive outlook. Assam is undergoing an economic renaissance, with the Budget designed to drive growth while improving the lives of its people," Sarma said.
The Finance Minister said Assam's per capita income has increased from Rs 60,817 in 2015-16 to Rs 1,85,429 in 2025-26, while the state's own tax revenue has risen to Rs 39,294 crore.
Among the key proposals, the government announced a four-fold increase in the agricultural income tax exemption limit for small tea growers, from Rs 2.5 lakh to Rs 10 lakh. It also proposed reducing VAT on piped natural gas from 14.5 per cent to 5 per cent to encourage cleaner energy use and lower household costs.
Baruah said the Budget is based on the ruling party's Sankalp Patra and aims to build a stronger, more self-reliant and developed Assam through inclusive growth and prudent fiscal management.
