The newly elected BJP-led government in Assam on Friday presented its first annual budget, focusing on expanding existing welfare schemes, creating 2,00,00 employment opportunities over the next five years, strengthening healthcare and infrastructure, and promoting entrepreneurship and the tea sector.
Finance minister Jayanta Mallabaruah presented his maiden budget and the 11th Budget of the BJP-led NDA government in the state since 2016. Ahead of the assembly elections, the previous government had presented a ₹62,295-crore vote-on-account budget covering the four-month period from April to July.
“The budget estimates of 2026-27 show a receipt of ₹1,51,843.23 crore under the consolidated fund. Out of this, ₹1,18,562.23 crore is on revenue account and the remaining ₹33,281 crore is under capital account. After adding the receipt of ₹1,34,466.22 crore under public account and ₹2,000 crore under contingency fund, the aggregate receipts amount to ₹2,88,309.45 crore,” Mallabaruah said.
“As against this, total expenditure from the consolidated fund in 2026-27 is estimated at ₹1,56,714.88 crore of which ₹1,18,562.23 crore is on revenue account and ₹38,152.65 crore is on capital account. Taking into account the expenditure of ₹1,26,369.57 crore under public account and ₹2,000 crore under contingency fund, the aggregate expenditure for the year is estimated at ₹2,85,084.45 crore,” he added.
The minister said the estimated transactions during the year would generate a surplus of ₹3,225 crore, which, after adjusting the opening deficit of ₹3,644.26 crore, would leave the state with a budget deficit of ₹419.26 crore at the end of the 2026-27 financial year. The Budget targets a fiscal deficit of 3% of the state’s projected Gross State Domestic Product (GSDP).
{{/usCountry}}The minister said the estimated transactions during the year would generate a surplus of ₹3,225 crore, which, after adjusting the opening deficit of ₹3,644.26 crore, would leave the state with a budget deficit of ₹419.26 crore at the end of the 2026-27 financial year. The Budget targets a fiscal deficit of 3% of the state’s projected Gross State Domestic Product (GSDP).
{{/usCountry}}Mallabaruah said budget utilisation had improved from 58% to 85% over the past decade, while per capita income had more than tripled from ₹60,817 in 2015-16 to ₹1,85,429 in 2025-26.
“Our own tax revenue has risen from ₹12,848 crore in 2015-16 to ₹39,294 crore in 2025-26. The share of own revenue in total revenue receipts has increased from 30% in 2015-16 to 36% in 2025-26. Capital expenditure has increased from ₹2,951 crore in 2015-16 to ₹26,531 crore in 2025-26,” he said.
The minister said the state’s debt-to-GSDP ratio stood at 24.81%, well within the Fiscal Responsibility and Budget Management (FRBM) limit of 32%. Assam’s credit-deposit ratio had also improved from 41.10% in March 2016 to 73.52% in March 2026.
“Over the next five years, the government will target 200,000 employment opportunities... A dedicated task force under the chairmanship of the chief secretary has already been constituted to prepare a comprehensive roadmap,” Mallabaruah said.
“I propose the creation of around 33,240 posts comprising 6,814 MBBS doctors, 82 AYUSH doctors, 22 dental surgeons, 10,942 nurses, 4,669 pharmacists, 4,669 laboratory technicians, 67 radiographers, 1,283 Auxiliary Nurse Midwives (ANMs), 4,625 lower division accountants and 67 dressers for health institutions across the state,” he added.
The Budget earmarks ₹6,000 crore to continue and expand several beneficiary schemes for women, students, fresh graduates, farmers and tea garden workers. Another ₹500 crore has been allocated to provide financial assistance of ₹1 lakh each to 50,000 entrepreneurs under an existing scheme to promote small businesses.
The minister also announced ₹2,100 crore for land acquisition for a proposed satellite city on the outskirts of Guwahati. To support the tea industry, the production subsidy for orthodox and specialty tea will be increased from ₹10 per kg to ₹15 per kg, while a new subsidy of ₹3 per kg will be introduced for export-oriented and premium-quality Assam CTC tea exported through recognised channels.
“Our government now proposes to establish four new medical colleges in Goalpara, Hailakandi, Hojai and Bajali districts, taking the total number of medical colleges to be set up in the state to 28... Our government also proposes the establishment of five-star hotels at Umrangso, Haflong and Manas. Eligible projects will receive a 30% capital subsidy along with SGST reimbursement and interest subvention as per the extant guidelines,” he said.
Mallabaruah also announced an increase in the MLA Local Area Development Fund (MLALAD) from ₹1 crore to ₹1.5 crore per MLA annually in 2026-27, which will be further enhanced to ₹2 crore per MLA from 2027-28. Ten per cent of the allocation will be reserved for immediate community needs and welfare support, while the remaining funds will be used for local infrastructure projects.
“To provide relief to small tea growers, I propose to enhance the agricultural income tax exemption threshold from ₹2.5 lakh to ₹10 lakh of annual agricultural income. At the same time, the tax will be restored for larger assessees with effect from April 1 this year,” he said.
Other major announcements included reducing VAT on piped natural gas from 14.5% to 5% and providing a 3% motor vehicle tax subvention for buyers of electric vehicles during the current financial year.