Syllabus: GS –III & V: Government Budgeting

Why in the news?

Following the Union Budget 2026–27, Union Minister Sarbananda Sonowal stated that the Budget places the Northeast, especially Assam, at the centre of India’s growth strategy, marking a clear shift from past neglect to sustained, infrastructure-led development.

The Budget’s larger vision

• The Union Budget 2026–27 reflects a targeted planning approach, focusing on cooperative federalism, capital investment, and region-specific development.
  
• For the Northeast, the Budget signals a transition from symbolic allocations to scale, continuity, and outcomes, integrating the region into New India’s economic and strategic roadmap.
  

Key allocations for the Northeast

• The allocation for the Ministry for Development of the North Eastern Region has risen to ₹6,812 crore, more than three times the 2014 level.
  
• Total Budgetary support for the Northeast increased by 22 percent, from ₹88,741 crore (2025–26 revised estimates) to ₹1,08,335 crore (2026–27 budget estimates).
  
• Since 2014, ₹7.3 lakh crore has been spent in the region, averaging over ₹60,000 crore annually, and crossing ₹1 lakh crore per year in recent times.
  

Assam’s fiscal and infrastructure gains

• Assam will receive ₹49,725 crore as its share of Union tax devolution in 2026–27, compared to about ₹11,500 crore in 2013–14, significantly strengthening the State’s fiscal autonomy.
  
• Railways in the Northeast have been allocated ₹11,486 crore, nearly five times higher than annual allocations during the pre-2014 period, improving connectivity and logistics.
  
• The expanded ₹2 lakh crore Special Assistance to States for Capital Investment is expected to accelerate urban renewal, transport corridors, and logistics infrastructure in Assam.
  

Urban development and regional balance

• ₹5,000 crore has been earmarked for Tier-II and Tier-III cities such as Guwahati, Dibrugarh, Silchar, Imphal, and Agartala.
  
• Focus areas include public transport, sanitation, digital governance, affordable housing, and smart infrastructure, reducing over-dependence on metros.
  

Peace, inclusion, and social justice

• A ₹500 crore rehabilitation package for former United Liberation Front of Assam cadres has been described as a landmark step for peace and reconciliation.

• Additional allocations for Karbi Anglong Autonomous Council, Bodoland Territorial Council, Adivasi, and Dimasa communities aim to address long-standing gaps in education, health care, infrastructure, and livelihoods.
  

Exam Hook – 

• The Union Budget 2026–27 demonstrates how fiscal federalism and capital investment can correct historical regional imbalances.

Mains Question: “How does the Union Budget 2026–27 reflect a shift in India’s approach towards the development of the Northeast? Discuss with reference to infrastructure, federal finance, and social inclusion.”

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