Assam Budget 2025-26: A Path to Inclusive Growth

Himangshu Ranjan Bhuyan

(himangshur1989@gmail.com)

The Assam Budget for the fiscal year 2025-26, presented by Finance Minister Ajanta Neog, is a comprehensive plan that aims to foster balanced growth across all sectors of the state. With a total allocation of Rs 2.63 lakh crore, the government has set out a vision that combines economic stability with robust social welfare measures, upgraded infrastructure, improved education and healthcare services, and a push towards technological innovation. This budget is designed to create an environment where every citizen can benefit from progress while also building a foundation for long-term development.

A major focus of the budget is strengthening Assam’s financial system. The Finance Department has received the highest allocation of Rs 35,301 crore. This investment is expected to improve key financial indicators such as the credit-deposit ratio, which the government aims to raise to the national benchmark of 78%. Enhanced digital payment systems and a better Direct Benefit Transfer mechanism are also high on the agenda. One of the notable features is the introduction of a zero-premium insurance scheme that will cover over four lakh government employees with a coverage of up to Rs 2 crore, ensuring that families of government workers are better protected. In addition, flagship welfare programs like “Apon Bahan,” “Apon Ghar,” “Orunodoi,” and “ATISIS” continue to receive significant support, thereby reinforcing the state’s commitment to social security.

The education sector is set to witness a substantial transformation with an allocation of Rs 18,733 crore to the School Education Department. This funding is aimed at upgrading school infrastructure and ensuring that quality education reaches both urban and rural areas. As part of this initiative, the PM POSHAN Scheme will be extended to benefit over 31.75 lakh children, securing proper nutrition for students and thereby enhancing their ability to learn. The plan also includes providing free bicycles to more than 3.23 lakh Class IX students and offering free textbooks and uniforms to 12 lakh students, which will help reduce the financial burden on families. Additionally, the recruitment of 5,550 new teachers and the modernisation of classrooms through the introduction of smart classrooms, ICT labs, and e-learning centres will modernise the educational landscape of Assam.

Healthcare is another area receiving significant attention, with an allocation of Rs 5,393 crore aimed at expanding and enhancing medical services across the state. This includes the establishment of three new medical colleges in Charaideo, Biswanath, and Bongaigaon, which are expected to start functioning by 2026-27. The budget also outlines plans for additional medical colleges in other strategic locations such as Sivasagar, Sribhumi, Tamulpur, Dhemaji, Morigaon, and Golaghat, with further projects in Darrang, Hojai, and Hailakandi. In a bid to improve the healthcare workforce, seven new nursing colleges will be established across various districts, ensuring that the state can meet the growing demand for skilled medical professionals.

Infrastructure development is another cornerstone of the budget, with the Public Works Department receiving Rs 10,200 crore to improve connectivity throughout Assam. This investment is geared towards developing all-weather roads, expanding urban road networks, and constructing high-speed motorways that will help bridge the gap between urban and rural areas. Ongoing projects, such as the Mukhyamantir Pakipath Nirman Achani, have already completed 1,361 kilometres of roads, and another 4,846 kilometres of rural roads have been approved for development. Additionally, the Mukhyamantir Path Nobikaran Achani is set to repair over 3,555 kilometres of rural and urban roads. High-profile projects like the Asom Mala Project, which has already constructed 343 kilometres of high-speed roads and 26 major bridges, are complemented by the nearly completed 1.24-kilometre Brahmaputra Bridge between Guwahati and North Guwahati and a 3.6-kilometre bridge connecting Palashbari and Sualkuchi. These developments will significantly improve transportation, boost commerce, and reduce travel time for residents.

Social welfare measures also play a vital role in the budget. A one-time financial aid of Rs 5,000 has been announced for nearly 6.8 lakh tea garden workers, with a total allocation of Rs 342 crore dedicated to supporting their well-being. The Orunodoi scheme, which provides financial assistance to women across Assam, will receive Rs 5,000 crore and is expected to benefit over 37 lakh women. The government is also launching the Mukhya Mantri Mahila Udyamita Abhiyan with an allocation of Rs 3,038 crore to encourage women entrepreneurs. Additionally, the Mukhiya Mantri Nijut Moina scheme, aimed at promoting girls’ education and reducing child marriage, has been allocated ?391 crore. Farmers will benefit from direct financial support as well, receiving Rs 250 per quintal for paddy and maize and Rs 500 per quintal for mustard. To further support the community, every ration card holder in Assam will receive essential items such as 1 kilogram each of lentils, sugar, and salt, with Rs 370 crore allocated for commissions to fair price shops.

Cultural and literary development has not been overlooked in the budget. Recognising the importance of fostering a vibrant cultural scene, the government has introduced a special initiative that provides a one-time financial assistance of Rs 25,000 to young writers contributing to creative science and education. There is also a move to promote a reading culture among citizens by encouraging the gifting of books on special occasions like birthdays and weddings. To support this effort further, government employees will receive Rs 1,000 to purchase books, a measure intended to cultivate a love for reading and lifelong learning.

The budget also signals a strong commitment to technology and innovation. One of the most groundbreaking projects is the launch of Assam’s first satellite, known as ‘ASSAMSAT.’ Developed in collaboration with IN-SPACe and the Indian Space Research Organisation (ISRO), the satellite is designed to serve multiple functions, including agricultural monitoring, disaster management, border security, and urban planning. This initiative not only demonstrates the state’s commitment to embracing modern technology but also provides valuable opportunities for students and researchers to engage in experimental satellite development, thereby nurturing a culture of innovation and scientific inquiry.

Overall, the Assam Budget 2025-26 is a carefully crafted plan that blends economic development with social welfare, infrastructure improvement, and technological progress. By making targeted investments in key sectors, the government aims to create a balanced growth model that supports both immediate needs and long-term ambitions. The focus on strengthening financial systems, upgrading education and healthcare, and developing world-class infrastructure is designed to create a resilient economy that benefits all citizens. Social welfare initiatives and cultural programs further ensure that the benefits of growth are shared equitably, while the embrace of technology and innovation paves the way for a modernised administration.

This integrated approach is expected to have a ripple effect throughout the state. Improved infrastructure will not only facilitate smoother transportation and communication but also encourage investment and commerce in both urban and rural areas. Upgraded educational facilities and healthcare services will lead to a more skilled and healthier workforce, essential for driving economic growth and social progress. At the same time, the strong focus on social welfare will help uplift marginalised communities, ensuring that no section of society is left behind. The emphasis on cultural development and technological innovation underscores the state’s commitment to preserving its rich heritage while moving confidently into the future.

In essence, the Assam Budget 2025-26 is more than just a financial plan; it is a strategic roadmap for inclusive growth and sustainable development. By addressing a wide range of needs—from financial security and infrastructure development to education, healthcare, and cultural enrichment—the budget sets the stage for a prosperous future where every citizen can thrive. The government’s holistic approach promises to not only improve current living standards but also lay the foundation for long-term progress and self-reliance. As these initiatives are gradually implemented, they are expected to transform Assam into a more connected, educated, and resilient state, ready to meet the challenges of the future and seize new opportunities for growth.