Assam FM Tables Rs 620.27 Crore Deficit Budget for FY 2025-26

Assam Finance Minister Ajanta Neog on Monday, March 10, presented the state budget for the financial year 2025-26, projecting a fiscal deficit of Rs 620.27 crore. The budget estimates total receipts of Rs 2,62,913.92 crore against an expenditure of Rs 2,60,959.24 crore. While an estimated surplus of Rs 1,954.68 crore from current transactions was recorded, the state's opening deficit of Rs 2,574.95 crore resulted in an overall budgetary shortfall.

This marks Neog’s fifth and last full budget before the 2026 assembly elections, balancing fiscal discipline with targeted economic expansion. The budget places emphasis on tax relief, industrial growth, and infrastructure development while ensuring strong social welfare measures.

Major Tax Relief and Industrial Boost

One of the key tax reforms includes the exemption of professional tax for individuals earning up to Rs 15,000 per month, benefiting over 1.43 lakh taxpayers. Additionally, to support Assam’s crucial tea industry, the tax holiday on green tea leaves has been extended by two years.

To propel economic growth, the government has allocated funds for the development of new industrial parks and urban infrastructure projects, aiming to attract significant investments.

Expanding Social Welfare Initiatives

The state government has earmarked Rs 5,000 crore for the expansion of the flagship Orunodoi scheme, increasing its coverage to 37.2 lakh beneficiaries. Further, a new initiative, the Mukhya Mantri Mahila Udyamita Abhiyan, has been introduced with an allocation of Rs 3,038 crore to support women entrepreneurs, reinforcing Assam’s commitment to gender-inclusive economic participation.

Power Subsidy for 48 Lakh Consumers

In a major relief to households, the government will reduce electricity rates by Rs 1 per unit for low and middle-class consumers under the Jeevan Dhara and Domestic Category. This targeted subsidy, amounting to Rs 300 crore, will benefit 48 lakh consumers across the state.

Tech-Driven Governance and Digital Push

The state government has allocated Rs 56 crore to bolster e-governance and technology-driven services. Notably, Tech City, Guwahati, now houses a 5G Experience Centre, showcasing advancements in healthcare, oil & gas, agriculture, and handicrafts through AR/VR applications. Additionally, under the PM-DeVINE scheme, a 3D Printing Centre of Excellence has been established, boosting Assam's innovation ecosystem. The education sector will also see the introduction of Virtual Reality (VR) labs in schools to enhance learning experiences.

Modernization of Assam Government Press

A sum of Rs 10 crore has been allocated for the modernization of the Government Press in Guwahati, known as "Assam Press." Plans include upgrading printing technology and improving efficiency. Additionally, new branches are set to open in Titabor while the Lakhimpur Press undergoes renovation. Further expansions include the installation of new machines and plans for a branch in Silchar. The Information, Public Relations, and Printing & Stationery Department has been allocated Rs 204 crore for these improvements.

Regulating Liquor Licensing

The Assam government has decided to halt the issuance of new IMFL 'ON' licenses in rural areas, except for select tourist resorts, hotels, and lodges, aiming to curb excessive liquor consumption. Existing license holders will have the option to convert their 'ON' licenses to 'OFF' licenses through a regulated process. To counteract the growing trend of premium liquor being flown into Assam due to higher excise duties, the government has proposed reducing excise duty on liquor sales at airports.

AI-Powered Cybersecurity Lab to Combat Deepfake Threats

In a groundbreaking initiative, Assam will establish India’s first AI-powered cybersecurity lab to tackle deepfake threats, digital fraud, and misinformation. The lab will specialize in digital forensics and real-time online threat detection, equipping Assam Police with cutting-edge tools to identify and counter manipulated media and cyber threats.

Self-Sufficiency in Livestock and Fisheries

The government has announced significant investments to boost self-reliance in egg, fish, and pork production. A Rs 11 crore Pure-line Pig Breeding Programme, along with a Pig Artificial Insemination (AI) Mission, will introduce Canadian pig breeds to improve local livestock. Additionally, Rs 24 crore has been allocated to enhance egg production and commercialize the poultry sector. A special committee will be set up to further explore self-sufficiency strategies in fish, fish feed, and pork production.

In a major boost to animal healthcare, three pet care hospitals will be operational in Guwahati, Bokakhat, and Dibrugarh by October 2025. Four multi-care veterinary hospitals are under construction in Kamrup, Golaghat, Lakhimpur, and Tinsukia, with an additional hospital in Sivasagar. The total budget for these facilities is Rs 24 crore.

Encouraging Literature and Reading Culture

To nurture literary talent, the government will provide financial support of Rs 25,000 to 1,000 young writers focusing on creative, scientific, and academic writing. Additionally, book fairs will receive state support, with district headquarters allocated Rs 5 lakh and co-district headquarters Rs 2.5 lakh for hosting Granth Melas.

In an unprecedented move, the government has proposed replacing official gifts at state functions with books to promote a reading culture. Additionally, each government employee will receive a one-time grant of Rs 1,000 for book purchases.

Strategic Relocation of Assam Police Battalion

In a move aimed at preventing encroachment on tribal lands and facilitating planned urban expansion, the government has decided to relocate the 10th Assam Police Battalion from Guwahati to Kachutali, Sonapur. This will pave the way for the development of a world-class Central Business District (CBD) in Guwahati, ensuring balanced urban growth while protecting indigenous rights.

Upgrading Guwahati District Library and Establishing a Central Library

The government will upgrade the Guwahati District Library following recommendations from the High-Level Committee (HLC). Additionally, a new multilingual Central Library will be constructed, dedicated to Assamese and indigenous communities, reinforcing Assam’s literary and cultural heritage.

 Major Pension & Welfare Reforms 

The Assam government has introduced key welfare measures in the Budget 2025-26, focusing on pension reforms, healthcare benefits, salary incentives, and financial aid for housing and solar energy adoption.

Key Highlights:

Pension Reforms: Restoration of the Old Pension Scheme (OPS) for eligible employees and introduction of a Unified Pension Scheme (UPS) for 2.8 lakh employees under NPS.

Healthcare Benefits: Launch of Ayushman Asom - Mukhya Mantri Lok Sevak Arogya Yojana (AA-MMLSAY), offering cashless medical treatment for government staff, including contractual and PSU employees.

Salary & Housing Support: Honorarium hike for ASHA workers, PM POSHAN cooks, and Anganwadi staff from October 1, 2025, alongside 50% HRA eligibility for fixed-pay employees.

Renewable Energy Push: Rs 2,000 per kW subsidy (up to Rs 6,000 for 3 kW) for rooftop solar installations under Pradhan Mantri Surya Ghar Muft Bijli Yojana for the first 50,000 employees.

Loan & Insurance Benefits: Apon Ghar & Apon Bahan schemes extended to PSU employees and contractual staff up to 60 years; Zero-Cost Accident & Death Insurance for contractual and PSU employees.