Assam Budget 2025-26; ₹2.63 lakh Cr budget reflecting a deficit of ₹620.27 Cr

Assam Budget 2025-26 – Finance Minister Ajanta Neog presented a ₹2.63 lakh crore budget for the fiscal year 2025-26, reflecting a deficit of ₹620.27 crore. This budget, her fifth under Chief Minister Himanta Biswa Sarma’s leadership since 2021, emphasizes realistic financial planning, infrastructure development, social welfare, and targeted support for education, youth, employment, women, and marginalized communities. It builds on the government’s vision to position Assam among India’s top five states while addressing electoral promises ahead of the 2026 polls.

The budget reflects a 250% increase in budgetary expenditure since the BJP-led government came to power in 2016-17, with capital expenditure rising to ₹24,964 crore in 2024-25, indicating a focus on long-term asset creation. The state’s Gross State Domestic Product (GSDP) is projected to reach ₹6.43 lakh crore in 2024-25, a 150% increase from ₹2.54 lakh crore in 2016-17, showcasing significant economic growth.

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Key Financial Highlights

• Total Budget Size: ₹2.63 lakh crore . This represents a substantial allocation compared to previous years, though lower than the ₹2.9 lakh crore budget for 2024-25, reflecting a shift toward fiscal prudence.
• Budget Deficit: ₹620.27 crore. A modest deficit, lower than the ₹774.47 crore projected for 2024-25, indicating efforts to balance expenditure with revenue generation.

 Major Policy Announcements and Allocations

1. Taxation Reforms

• Professional Tax Exemption: Monthly incomes up to ₹15,000 are exempt from professional tax, benefiting over 1.43 lakh taxpayers. This measure aims to enhance disposable income and stimulate consumption, particularly among low- and middle-income workers.
• Green Tea Leaves Tax Holiday: Extended for two more years to support the tea industry, a critical economic pillar in Assam facing challenges from fluctuating markets and climate impacts.

2. Employment and Youth Empowerment

• Job Creation: The government has delivered nearly 1.2 lakh jobs since 2021, exceeding its promise of 1 lakh government jobs. An additional 40,000+ jobs are planned for 2025-26.
• Jibon Prerana Scheme: Graduates from government universities and colleges (class of 2025) will receive ₹2,500 monthly for up to one year or a one-time grant of ₹25,000. Research scholars will receive ₹25,000, with ₹50,000 for specially-abled scholars. ₹25 crore allocated to this scheme, targeting permanent residents (excluding beneficiaries of other schemes like Nijut Moina).
• Entrepreneurship Support: ₹773 crore allocated to the Chief Minister’s Atmanirbhar Asom Abhijan to foster self-reliance among youth.

3. Social Welfare and Women’s Empowerment 

• Orunodoi Scheme: ₹5,000 crore allocated to cover over 37 lakh women, providing financial assistance to enhance household stability.
• Mukhya Mantri Mahila Udyamita Abhiyan: ₹3,038 crore to support women entrepreneurs, launching from April 1, 2025, in Behali.
• Nijut Moina Scheme: Continued funding to boost girls’ higher education and combat child marriage, transforming the lives of lakhs of girls.

4. Support for Tea Garden Workers

Financial Assistance: ₹5,000 one-time aid for 6.8 lakh tea garden workers (casual and permanent), with ₹342 crore allocated. This addresses the socio-economic vulnerabilities of this key workforce.

5. Infrastructure Development

• Dibrugarh as Second Capital: ₹200 crore for a new Assembly building and MLA hostel, signaling decentralization and regional development.
• Asom Mala (One District One Road): ₹2,625 crore to improve rural connectivity.
• Education and Health Infrastructure: ₹582 crore for a Medical College in Darrang.
• ₹400 crore for Kanaklata University. ₹405 crore for a new High Court building at Rangmahal.
• Sports: ₹675 crore for the Nehru Stadium FIFA Centre.

6. Education and Cultural Preservation

• School Upgradation: ₹97 crore for model schools and upgrading 25 Bodo-medium schools.
• Cultural Complexes: ₹100 crore for multipurpose cultural complexes to preserve tribal and ethnic heritage.
• Vistarit Assam Darshan: ₹3 lakh in two installments to 25,000 Namghars and religious institutions for heritage preservation.

7. Healthcare and Employee Welfare

• Ayushman Asom – Mukhya Mantri Lok Sevak Arogya Yojana: Cashless treatment at CGHS rates for government employees, PSU staff, and contractual workers up to 60 years of service.
• Old Pension Scheme (OPS): Consideration for restoration for employees recruited before February 1, 2005, recognizing their long-term contributions.

8. Food Security

• Subsidized Rations: From October 2025, 1 kg each of masur dal, sugar, and salt at subsidized rates for NFSA ration card holders, with an extra 1 kg of dal for families with over five members.

9. Industrial Growth

Tata Electronics Investment: ₹27,000 crore investment, the largest private investment in Assam in 75 years, expected to generate 27,000 jobs and bolster industrial transformation.

10- Economic and Social Implications

• Economic Growth: The budget aligns with Assam’s rising GSDP contribution to the national economy (from 1.65% in 2016-17 to 1.81% in 2022-23 at current prices). The focus on infrastructure and industrial investment (e.g., Tata Electronics) aims to sustain this trajectory.
• Capital expenditure emphasis ensures long-term economic benefits, though the modest deficit suggests cautious fiscal management.
• Social Equity: Targeted schemes for women, youth, tea workers, and marginalized communities reflect a populist approach, likely aimed at consolidating voter support ahead of 2026.
• Education and healthcare investments address human development indices, critical for Assam’s socio-economic upliftment.
• Political Context: As the last full budget before the 2026 elections, it balances development with welfare sops (e.g., tax exemptions, financial aid). This could strengthen the BJP-led government’s narrative of progress and inclusivity.
• Challenges: The deficit, though manageable, requires robust revenue generation to avoid future fiscal strain. Implementation of ambitious schemes like Jibon Prerana and infrastructure projects will test administrative capacity.

Critical Analysis

Strengths:

• The budget’s focus on realistic financial planning avoids inflated projections, a shift from past practices, enhancing credibility.
• Investments in education, healthcare, and infrastructure align with long-term development goals, while welfare measures address immediate needs.
• The professional tax exemption and tea industry support are pragmatic steps to boost economic activity.

Weaknesses:

• Limited details on revenue sources raise questions about funding sustainability, especially with a deficit budget.
• Heavy reliance on flagship schemes (e.g., Orunodoi, Nijut Moina) may strain finances if not matched by revenue reforms.
• The focus on populist measures could overshadow structural reforms needed for industrial diversification beyond tea and Tata’s investment.

Conclusion 

The Assam Budget 2025-26, presented by Ajanta Neog, is a strategic blend of development and welfare, tailored to address both immediate electoral imperatives and long-term growth. With a ₹2.63 lakh crore outlay, it prioritizes infrastructure, education, employment, and social equity while maintaining fiscal caution with a ₹620.27 crore deficit. The budget’s success will hinge on effective implementation and revenue enhancement, areas where the government has promised reforms. As Assam gears up for the 2026 polls, this budget positions the ruling coalition as a proactive force, though its legacy will depend on translating promises into tangible outcomes for the state’s 3.5 crore citizens.