Assam Unveils ₹2.85 Lakh Crore Budget: Tax Relief for Tea Growers, Cheaper Natural Gas
The Assam government on Friday presented a ₹2,85,084 crore budget for the 2026-27 financial year, proposing a four-fold increase in the tax exemption limit for small tea growers and a sharp reduction in Value Added Tax (VAT) on piped natural gas (PNG).
Presenting his maiden budget, Finance Minister Jayanta Malla Baruah said the state aims to reduce the budget deficit to ₹419 crore while continuing all major schemes from the previous five years.
“The budget estimates for 2026-27 show receipts of ₹1,51,843.23 crore under the consolidated fund of the state. Including ₹1,34,466.22 crore under the public account and ₹2,000 crore under the contingency fund, aggregate receipts stand at ₹2,88,309.45 crore,” Baruah said in the assembly.
Total expenditure from the consolidated fund is estimated at ₹1,56,714.88 crore. Combined with ₹1,26,369.57 crore from the public account and ₹2,000 crore from the contingency fund, aggregate expenditure is pegged at ₹2,85,084.45 crore.
“Together with the opening deficit of ₹3,644.26 crore, this leads to a budget deficit of ₹419.26 crore at the end of 2026-27. The budget targets a fiscal deficit of 3% of the state’s projected Gross State Domestic Product (GSDP),” Baruah added.
In a move aimed at supporting small tea growers, the finance minister proposed raising the agricultural income tax exemption threshold from ₹2.5 lakh to ₹10 lakh. “This will provide significant relief to small tea growers and encourage production,” he said.
To reduce household energy costs and promote cleaner fuel, Baruah announced a cut in VAT on piped natural gas from 14.5% to 5%. “This will support the expansion of city gas supply and make PNG more affordable for households,” he noted.
The finance minister highlighted the state’s economic growth, stating that per capita income has more than tripled from ₹60,817 in 2015-16 to ₹1,85,429 in 2025-26. “Assam’s growth story is becoming more broad-based and inclusive,” he said.
The budget retains focus on infrastructure, education, and healthcare, with allocations for these sectors remaining consistent with previous years. The government expects improved revenue collection and increased central assistance to meet its fiscal targets.
