Guwahati: The Assam Government on Friday unveiled a ₹2,85,084 crore Budget for the 2026-27 financial year, placing infrastructure development, healthcare, energy, agriculture and social welfare at the centre of its growth strategy while keeping the fiscal deficit at 3 per cent of the Gross State Domestic Product (GSDP).
Presenting his maiden Budget in the Assam Legislative Assembly, Finance Minister Jayanta Mallabaruah said the State enters the new financial year from a position of fiscal stability. He began his address by invoking “Om Ganeshaya Namah” and paid tribute to Bharat Ratna Dr Bhupen Hazarika on his birth centenary, drawing inspiration from the legendary cultural icon’s message of humanity. The Minister also referred to Kautilya’s Arthashastra, emphasising that public welfare remains the guiding principle of governance.
The Budget projects total expenditure of ₹2,85,084 crore for 2026-27 while maintaining the fiscal deficit at 3 per cent of GSDP. According to the Finance Minister, Assam continues to maintain a strong fiscal position, with the State’s debt-to-GSDP ratio at 24.81 per cent, well below the Fiscal Responsibility and Budget Management (FRBM) ceiling of 32 per cent. The government has also set a target of increasing the share of its own revenue in total receipts from 36 per cent to 50 per cent by 2031.
Infrastructure received a significant boost with the announcement of Asom Mala 4.0, under which 800 kilometres of roads will be constructed over the next five years at an estimated cost of ₹10,000 crore. The Budget also allocates ₹2,100 crore for land acquisition for the proposed Aerotropolis near Lokpriya Gopinath Bordoloi International Airport and earmarks ₹500 crore over five years for the development of the Dibrugarh State Capital Region.
A major highlight of the Budget is a ₹77,353 crore investment pipeline for the power sector. The proposed investments cover thermal, hydel, pumped storage, solar and transmission projects aimed at transforming Assam into a power-surplus state and strengthening long-term energy security.
The government also proposed an irrigation expansion programme involving investments of ₹3,000-4,000 crore over the next five years. The initiative includes allocations for preparing a comprehensive irrigation plan, promoting organic certification and boosting agricultural exports.
On the welfare front, more than ₹6,000 crore has been earmarked for flagship schemes, including Orunodoi, pensions, student assistance, farmer support and tea garden welfare. The government also announced that welfare payments suspended during the election period will resume from August.
Healthcare emerged as another major focus area, with proposals to create 33,240 new posts, establish four new medical colleges and set up a ₹550 crore Proton Therapy Centre at Gauhati Medical College and Hospital. The Budget also includes additional investments to strengthen healthcare infrastructure across the State.
The Budget further proposes several tax relief measures, including raising the Agricultural Income Tax exemption limit for small tea growers from ₹2.5 lakh to ₹10 lakh, reducing VAT on piped natural gas from 14.5 per cent to 5 per cent, exempting stamp duty on loans of up to ₹10 lakh for women Self-Help Group members and extending a 3 per cent motor vehicle tax subvention for electric vehicle buyers.
To improve revenue mobilisation, the government has proposed introducing a GIS-based property valuation system, implementing an e-Khazana-based land revenue collection mechanism, expanding compulsory property registration and launching a one-time settlement scheme for pending tax and vehicle fitness dues.
The Budget reflects the government’s emphasis on balancing fiscal discipline with higher public investment while prioritising infrastructure, healthcare, welfare and revenue reforms to support Assam’s long-term economic growth and inclusive development.
