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Assam Budget 2026-27: Tea Growers Receive Massive Tax Relief, PNG VAT Reduced to 5%, State Targets Strong Fiscal Discipline

  • By Thetripurapost Desk, Guwahati
  • Jul 10, 2026
  • 141

The Assam Budget 2026-27 has introduced a series of major financial reforms aimed at boosting economic growth, supporting small tea cultivators, lowering household energy costs and maintaining fiscal stability. Finance Minister Jayanta Malla Baruah, while presenting his maiden Budget in the Assam Assembly on Friday, announced several taxpayer-friendly measures alongside a comprehensive financial roadmap for the state.

The Budget estimates total government expenditure at ₹2,85,084.45 crore, while projecting total receipts of ₹2,88,309.45 crore, reflecting the government's focus on sustainable development and responsible fiscal management.

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Assam Government to Continue Flagship Welfare and Development Schemes

Presenting his first Budget, Baruah assured the Assembly that all flagship welfare programmes and development initiatives introduced during the past five years will continue without interruption. The government aims to accelerate infrastructure growth, strengthen public services and improve the state's economic performance.

The Finance Minister also stated that Assam intends to reduce its Budget deficit significantly, targeting a closing deficit of just ₹419.26 crore by the end of the 2026-27 financial year.

Budget Receipts and Expenditure Cross ₹2.85 Lakh Crore

According to the Budget estimates, receipts under the Consolidated Fund are projected at ₹1,51,843.23 crore. Combined with ₹1,34,466.22 crore under the Public Account and ₹2,000 crore through the Contingency Fund, total receipts are estimated at ₹2,88,309.45 crore.

Meanwhile, expenditure from the Consolidated Fund is expected to reach ₹1,56,714.88 crore. Including Public Account spending of ₹1,26,369.57 crore and the Contingency Fund allocation, the state's aggregate expenditure is estimated at ₹2,85,084.45 crore.

Fiscal Deficit to Remain Within 3% of GSDP

Despite inheriting an opening deficit of ₹3,644.26 crore, the Assam government plans to end the financial year with a Budget deficit of ₹419.26 crore. The Finance Minister reiterated that the fiscal deficit has been capped at 3% of the state's projected Gross State Domestic Product (GSDP), in line with prudent fiscal management.

Big Relief for Small Tea Growers

One of the Budget's biggest announcements is a substantial increase in the agricultural income tax exemption limit for small tea growers.

 

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The exemption threshold has been proposed to rise from ₹2.5 lakh to ₹10 lakh, offering significant financial relief to thousands of tea cultivators across Assam and encouraging investment in the state's vital tea industry.

VAT on Piped Natural Gas Reduced to 5%

To promote clean energy adoption and reduce household fuel expenses, the government has proposed slashing VAT on piped natural gas (PNG) from 14.5% to just 5%.

The move is expected to make PNG more affordable for consumers while supporting the expansion of city gas distribution infrastructure across Assam.

Assam's Per Capita Income More Than Triples

Highlighting the state's economic achievements, Baruah said Assam's per capita income has increased from ₹60,817 in 2015-16 to ₹1,85,429 in 2025-26.

The sharp rise reflects stronger economic activity, higher incomes and broader participation in the state's growth story over the past decade.

Key Highlights of Assam Budget 2026-27

  • Total Budget Expenditure: ₹2,85,084.45 crore
  • Total Estimated Receipts: ₹2,88,309.45 crore
  • Budget Deficit Target: ₹419.26 crore
  • Fiscal Deficit: 3% of projected GSDP
  • Tea Growers' Tax Exemption increased from ₹2.5 lakh to ₹10 lakh
  • PNG VAT reduced from 14.5% to 5%
  • Flagship welfare schemes to continue
  • Per capita income rises to ₹1.85 lakh

Conclusion

The Assam Budget 2026-27 focuses on balancing fiscal responsibility with economic expansion. Through tax relief for small tea growers, lower VAT on piped natural gas, continued welfare spending and a disciplined fiscal framework, the government has attempted to create a Budget that supports businesses, farmers and households while strengthening Assam's long-term economic outlook.

 

 

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