The Assam government on Friday (July 10) presented a fiscally ambitious Budget for 2026–27, with Finance Minister Jayanta Mallabaruah laying out aggregate expenditure of Rs 2,85,084.45 crore while aiming to reduce the fiscal gap to Rs 419.26 crore by year‑end. Baruah’s maiden Budget focusses on infrastructure and connectivity with measures to support farmers, tea garden workers and small entrepreneurs.

The state Finance Minister told the Legislative Assembly that receipts under the Consolidated Fund of the State are estimated at Rs 1,51,843.23 crore (Rs 1,18,562.23 crore revenue; Rs 33,281 crore capital). Adding receipts of Rs 1,34,466.22 crore under the public account and Rs 2,000 crore in contingency, aggregate receipts total Rs 2,88,309.45 crore.

Consolidated Fund expenditure is pegged at Rs 1,56,714.88 crore (Rs 1,18,562.23 crore revenue; Rs 38,152.65 crore capital), with aggregate outgo including public account and contingency bringing total expenditure to Rs 2,85,084.45 crore. The minister estimated an end‑year Budget deficit of Rs 419.26 crore, down from an opening deficit of Rs 3,644.26 crore, and said the fiscal deficit target stands at 3% of projected GSDP.

Major connectivity investments and transformational projects in Assam

A central theme of the Budget is heavy investment in connectivity and transformational infrastructure developed in partnership with the Government of India, amounting to more than Rs 55,000 crore.

Key projects highlighted include the Guwahati Ring Road (Rs 4,954 crore), the Greenfield Silchar High Speed Corridor (Rs 22,864 crore) that will cut travel time between Guwahati and Silchar from around 8.5 hours to nearly five hours, the Kaziranga Elevated Corridor (Rs 6,957 crore), and the Gohpur‑Numaligarh Brahmaputra Tunnel (Rs 18,662 crore). Baruah also flagged three critical connectivity schemes under close central coordination: four‑laning of Baihata Chariali‑Mission Chariali, Tezpur (Rs 13,812 crore); an elevated corridor from Guwahati Airport to Jalukbari (Rs 3,423 crore); and a new bridge connecting Morigaon and Darrang across the Brahmaputra.

Support for agriculture, tea sector and households

The Budget carries measures designed to cushion households and strengthen primary sector incomes. In a bid to support small tea growers, the Finance Minister proposed raising the agricultural income tax exemption limit from Rs 2.5 lakh to Rs 10 lakh — a fourfold increase intended to widen relief for marginal producers. The government will continue special procurement and support programmes for paddy, maize and mustard, and extend dairy subsidies and targeted assistance to pregnant tea garden workers.

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Chief Minister Himanta Biswa Sarma underlined that orthodox tea production has risen to 8 crore kg over the last four years under “tea garden friendly” schemes; the administration announced plans to increase production subsidy to Rs 15 per kg and an export incentive of Rs 3 per kg to bolster competitiveness.

Jobs, education field, entrepreneurship and urban‑rural connectivity

The Budget allocates resources for entrepreneurship and job creation, including a Rs 500 crore plan aimed at supporting 50,000 entrepreneurs across the state. Minister Baruah and Chief Minister Sarma emphasised skilling, industrialisation and inclusive growth as core priorities, with special attention to bringing development to the Barak Valley, hill districts and tea garden regions. The government will also launch ‘Asom Mala 4.0’ to construct 800 km of roads over the next five years, a programme designed to accelerate last‑mile connectivity and unlock economic activity in underserved areas.

Fiscal prudence and development balance

Jayanta Baruah stressed that the Budget balances fiscal prudence with development imperatives. The estimates point to an expected surplus of Rs 3,225 crore from transactions during the year, which after accounting for the opening deficit produces the modest projected end‑year gap. The state’s continued emphasis on capital expenditure — Rs 38,152.65 crore from the consolidated fund — signals priority for long‑term growth drivers while maintaining revenue discipline.

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The state govt officials said that they will continue major schemes launched over the past five years while evaluating new proposals for inclusion in the upcoming state budget calendar. The effective delivery of large central projects will hinge on coordination with the Centre, timely land acquisition and contractor capacity to meet ambitious timelines.