Assam Finance Minister Jayanta Malla Baruah presented the state's ₹2,85,084 crore Budget for 2026-27 on Friday, marking his maiden budget presentation. According to reports from Business Standard, the budget estimates show receipts of ₹1,51,843.23 crore under the consolidated fund, with additional receipts of ₹1,34,466.22 crore under public account and ₹2,000 crore under contingency fund, bringing total receipts to ₹2,88,309.45 crore. The total expenditure from the consolidated fund is estimated at ₹1,56,714.88 crore, with additional expenditure of ₹1,26,369.57 crore under public account and ₹2,000 crore under contingency fund, resulting in aggregate expenditure of ₹2,85,084.45 crore.
The budget introduces comprehensive support measures for Assam's tea industry, with ₹3 per kg subsidy for export-oriented and premium-quality Assam CTC tea announced for the first time. As reported by NDTV, Finance Minister Baruah stated that this is the first dedicated export incentive for premium Assam CTC tea in the state budget. Additionally, production subsidy for orthodox and speciality tea has been enhanced from ₹10 per kg to ₹15 per kg, with premium Matcha tea being added to these categories. To provide relief to small tea growers, the government proposes to enhance the agricultural income tax exemption threshold from ₹2.5 lakh to ₹10 lakh of annual agricultural income. The tax will be restored for larger assessees with effect from April 1, 2026, with the additional revenue generated being dedicated exclusively to the welfare of tea garden communities.
The budget introduces significant reforms to welfare schemes, with men practising polygamy barred from receiving any government welfare benefits. As reported by Business Standard, Finance Minister Baruah stated that welfare measures should not only reach the deserving but also enforce "inclusivity, integrity and moral ethos" in society. The budget proposes amending the Assam Services (Discipline and Appeal) Rules, 1964, to provide that any government servant found to have practised polygamy shall be liable for dismissal from service. Additionally, persons convicted of criminal offences will be barred from notified welfare schemes, reinforcing the government's commitment to promoting integrity and responsible citizenship.
According to the budget announcement, the government has proposed significant tax relief measures for key sectors. The agricultural income tax exemption threshold has been enhanced from ₹2.5 lakh to ₹10 lakh to provide relief to small tea growers. Additionally, to reduce household energy costs and promote cleaner fuel, the government proposes to reduce VAT on piped natural gas from 14.5% to 5%. These measures are designed to support the state's agricultural sector and encourage adoption of cleaner energy sources. The tea sector, a mainstay of Assam's economy and identity, has featured prominently in the state's recent fiscal policy, with the government having earlier this year granted a three-year exemption on agricultural income tax to mark 200 years of the Assam tea industry.
Several tea sector associations have welcomed the budget's comprehensive support measures. The Guwahati Tea Auction Buyers Association (GTABA) described the export subsidy as a landmark initiative that will enhance competitiveness of Assam tea in international markets. The Tea Association of India (TAI) praised the budget as providing a fillip to the tea industry in all spheres, with TAI secretary general PK Bhattacharjee noting that the tea sector has been a backbone of the state economy from employment generation perspective. The budget also proposes the Assam Tea and Golf Trail, a unique tourism initiative integrating Assam's globally renowned tea estates with golf courses, and strengthening tea garden hospitals with improved infrastructure and dedicated healthcare personnel. The government will continue all major schemes rolled out during the last five years, ensuring program continuity and beneficiary stability.
