Assam Budget 2026-27: Bigger Outlay, Lower Deficit and Major Relief for Tea Growers

The Assam government on Friday presented a Rs 2,85,084 crore Budget for the 2026-27 financial year , combining a larger spending plan with a sharper focus on fiscal discipline. Presenting his maiden Budget, Finance Minister Jayanta Malla Baruah said the government would continue all major welfare and development schemes launched over the past five years while aiming to reduce the budget deficit to Rs 419.26 crore by the end of the fiscal.

The latest Budget represents a notable increase from the 2025-26 Budget outlay of around Rs 2.63 lakh crore. This means the state's total expenditure plan has risen by roughly Rs 22,000 crore , translating into an increase of about 8.4 per cent year-on-year. At the same time, the government has sought to improve its finances by bringing down the budgeted deficit from approximately Rs 620 crore in 2025-26 to Rs 419 crore in 2026-27 , a reduction of nearly Rs 201 crore . The fiscal deficit target has also been lowered to 3 per cent of the projected Gross State Domestic Product (GSDP), compared with the 3.7 per cent target in the previous budget.

According to the Budget estimates, receipts under the consolidated fund are projected at Rs 1,51,843.23 crore . After adding Rs 1,34,466.22 crore under the public account and Rs 2,000 crore under the contingency fund, total aggregate receipts are expected to reach Rs 2,88,309.45 crore . Aggregate expenditure for the year, including spending under the consolidated fund, public account and contingency fund, has been estimated at Rs 2,85,084.45 crore .

One of the biggest announcements was aimed at Assam's vast network of small tea growers . The government proposed increasing the agricultural income tax exemption threshold from Rs 2.5 lakh to Rs 10 lakh . The Budget also proposed a significant reduction in VAT on piped natural gas (PNG) from 14.5 per cent to 5 per cent . This is a cut of 9.5 percentage points , or roughly 65.5 per cent from the earlier rate, aimed at reducing household energy costs, encouraging cleaner fuel use and supporting the expansion of city gas distribution networks across the state.

Highlighting Assam's economic progress, Baruah said the state's per capita income has more than tripled, rising from Rs 60,817 in 2015-16 to Rs 1,85,429 in 2025-26 . The increase of Rs 1,24,612 over the decade, he said, reflects a growth story that is becoming increasingly broad-based and inclusive.