The Assam Government presented the Budget 2026–27 with a ₹419.26 crore fiscal deficit, emphasising sustainable growth, infrastructure development, digital governance and tax relief without imposing any new taxes.

Key Highlights

• The Budget estimates a fiscal deficit of 3% of the State Gross State Domestic Product (GSDP), in line with the Fiscal Responsibility and Budget Management (FRBM) framework.
• The total estimated expenditure is ₹2,85,084.45 crore, while total receipts are estimated at ₹2,88,309.45 crore.
• Capital expenditure of nearly ₹29,000 crore has been proposed to strengthen roads, energy, public infrastructure and economic growth.

Major Announcements

• The government has planned investments worth over ₹77,353 crore in the power sector, including hydropower, solar energy, thermal power and energy storage projects, through State funds, Centrally Sponsored Schemes, externally aided projects and Public-Private Partnerships (PPP).
• Asom Mala 4.0 will construct 800 km of roads over the next five years to improve rural and regional connectivity.
• Mission Basundhara 4.0 will focus on digital land surveys, especially in char areas, while ensuring land rights for indigenous communities.
• A Homestay Policy will promote community-based tourism by providing a 30% capital subsidy and 2% interest subvention for eligible registered homestays.
• An Animation, Visual Effects, Gaming, Comics and Extended Reality (AVGC-XR) Talent Development Policy will be launched to create employment opportunities for youth in the creative economy.
• Sewa Setu will be upgraded into an Artificial Intelligence-enabled citizen service platform, while e-Courts, virtual hearings and digital judicial services will improve governance.

Taxation and Green Measures

• No new taxes have been introduced.
• A Green Cess will be imposed on environmentally polluting activities such as stone crushers, brick kilns, coke-based industries, commercial groundwater extraction and transfer of second-hand vehicles.
• The proceeds from the Green Cess will finance afforestation, biodiversity conservation, pollution control, climate adaptation and green infrastructure.
• Value Added Tax (VAT) on piped natural gas has been reduced from 14.5% to 5%, encouraging cleaner fuel usage.
• Electricity duty exemption for captive renewable energy has been extended for three years, and electric vehicles will receive a 3% Motor Vehicle Tax subsidy.

Support for Tea Sector

• The agricultural income tax exemption for small tea growers has been increased from ₹2.5 lakh to ₹10 lakh annually, providing relief to small producers.
• Agricultural income tax on larger tea estates has been restored, and the revenue collected will be used for the welfare of tea garden communities.

Exam Hook (Prelims)

Q. Which of the following measures were proposed in the Assam Budget 2026–27?

1. Introduction of a Green Cess on selected polluting activities.
2. Reduction of Value Added Tax on piped natural gas.
3. Launch of Mission Basundhara 4.0 for digital land governance.

Select the correct answer using the code below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (d)

One-line Wrap: The Assam Budget 2026–27 combines fiscal discipline with green growth, infrastructure expansion, digital governance and inclusive welfare to accelerate sustainable development.