The Assam government on Friday presented a Rs 2,85,084 crore budget for the 2026-27 financial year and proposed reducing Value-Added Tax (VAT) on piped natural gas to 5 per cent from 14.5 per cent to promote cleaner fuel. Presenting his maiden Budget, Assam Finance Minister Jayanta Malla Baruah also announced that he would continue all the major schemes rolled out during the last five years.
"The Budget estimates of financial year 2026-27 show a receipt of Rs 1,51,843.23 crore under the consolidated fund of the state... After adding the receipt of Rs 1,34,466.22 crore under public account and Rs 2,000 crore under contingency fund, the aggregate receipts amount to Rs 2,88,309.45 crore," he added.
By contrast, the total expenditure from the consolidated fund for the 2026-27 fiscal is estimated at Rs 1,56,714.88 crore, Baruah said.
He further said that taking into account the expenditure of Rs 1,26,369.57 crore under public account and Rs 2,000 crore under contingency fund, the aggregate expenditure for the year is estimated at Rs 2,85,084.45 crore.
"This, together with the opening deficit of Rs 3,644.26 crore will lead to a Budget deficit of Rs 419.26 crore at the end of the financial year 2026-27. The Budget for the financial year 2026-27 targets a fiscal deficit of 3 per cent of the state's projected GSDP," he added.
Relief to small tea growers
In a bid to provide relief to small tea growers, the finance minister proposed to enhance the agricultural income tax exemption threshold from Rs 2.5 lakh to Rs 10 lakh.
"To reduce household energy costs, promote cleaner fuel and support city gas supply expansion, I propose to reduce VAT on piped natural gas from 14.5 per cent to 5 per cent," Baruah said.
Three-fold rise in budget
Assam Chief Minister Himanta Biswa Sarma on Friday said the state's budget has seen a three-fold rise to Rs 2,00,782 crore and fund utilisation stands at 85 per cent.
The budget is aimed at powering growth along with uplifting people, he said in the post.
"Our Budget size has increased three-fold to Rs 2,00,782 crore in 2025-26, and all economic indicators have a positive outlook," Sarma said.
He highlighted that per capita income has tripled from Rs 60,817 in 2015-16 to Rs 1,85,429 in 2025-26 while Assam's own tax revenue has increased to Rs 39,294 crore.
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