Assam State Budget 2024–25: Key Insights and Implications

 Madhurjya Saikia

(madhurjyatu15@gmail.com)

 The annual budget for 2024–25 in Assam has the stated aim of uplifting communities. It allocates funds for education, healthcare, and poverty alleviation programs. The budget prioritizes vulnerable groups, ensuring access to basic needs and opportunities. Investments in skill development, housing, and nutrition programmes empower citizens. Additionally, it supports initiatives for women’s empowerment and child welfare. The government emphasizes transparency and efficiency in fund utilization to maximize impact. Through strategic planning and collaboration with stakeholders, the budget endeavours to create a more inclusive and prosperous society for all residents of Assam. 

The Assam government on Monday presented a Rs 2.9 lakh crore budget for the fiscal year 2024-2025 with a deficit of Rs 774.47 crore and proposed no new tax. Budget estimates for 2024–25 show receipt of Rs 143,605.56 crore under the consolidated fund of the state. With a receipt of Rs 1,44,550.08 crore under the public account and Rs 2,000 crore from the contingency fund, the total expenditure from the consolidated fund in 2024–25 is estimated at Rs 1,43,890.62 crore. Expanding the size of the state economy, the GSDP is estimated to touch Rs 6.43 lakh crore during the next financial year, as against the revised estimate of Rs 5.7 lakh crore in 2023–24.

Assam’s gender budgeting focuses on allocating funds for women’s empowerment, promoting women-led welfare mechanisms, and supporting initiatives such as skill training, entrepreneurship, healthcare, and education. These efforts aim to enhance gender equality, uplift women economically, and foster their active participation in the state’s development. A host of women-centric schemes were added in by the Assam government, which included financial aid to educate 10 lakh girls up to post-graduation level to eliminate child marriage. The Mukhya Mantri Mahila Udyamita Asoni scheme, aimed at helping 3.9 million women associated with self-help groups (SHGs) start their entrepreneurial journey.

Assam’s green growth and sustainable development initiatives through the budget prioritize environmental conservation and economic progress. Funding is allocated for renewable energy projects, afforestation programs, and sustainable agriculture practices. Investments in eco-friendly infrastructure and waste management systems reduce carbon footprints and promote a cleaner environment. Additionally, the budget supports initiatives that ensure equitable distribution of resources and opportunities, fostering social inclusivity and resilience. Through strategic budgetary planning, Assam aims to achieve balanced growth that benefits both present and future generations while safeguarding the environment. MoUs were signed between Assam Power Generation Corporation Limited and Oil India Limited for Rs 4,091 crore for green power generation projects, including a 25 MW solar project at Namrup. The government of India has approved the setup of 1000 MW solar power plants, enhancing green energy. Further, the works on the Lower Kopili Hydroelectric Project, with a capacity of 120 MW, will be completed by the end of this year. The introduction of 100 CNG buses, 200 electric buses in Guwahati city under ASTC in the Guwahati metropolitan area is aimed at making public transport 100% green and fossil-fuel free. All new buildings (private and public) to be constructed in Assam shall mandatorily install roof-top solar facilities. As part of the state’s commitment to eco-friendly practices, the Assam government introduced a 2% reduction in Motor Vehicle Tax and exemptions on registration fees for new electric vehicles.

The Assam budget prioritizes inclusive growth and welfare by focusing on equitable development across all sections of society. Special provisions are made to support marginalized communities, including scheduled tribes, scheduled castes, and economically backward groups. Investments in skill development programmes, employment generation schemes, and social security measures aim to uplift the underprivileged and ensure their participation in the state’s progress. Through inclusive budgetary policies, Assam strives to create a more equitable and prosperous society where every citizen has access to opportunities for growth and well-being. The state will take measures to secure land rights for the tea tribe community and some of the members of indigenous communities.  The Assam government, during the budget period 2024–25, has announced the expansion of its welfare programme, Orunodoi 2.0, reaching out to an impressive 30 lakh households across the state.

Assam’s thrust on infrastructure and connectivity is underscored by budget provisions aimed at enhancing transportation networks and communication links and investments in target roads and satellite towns to facilitate the seamless movement of goods and people. Additionally, funds are allocated for digital connectivity initiatives, including broadband expansion and mobile network enhancement, to bridge urban-rural divides. Improved infrastructure boosts trade, tourism, and economic growth, while enhancing disaster resilience and access to essential services. Through strategic budgetary allocations, Assam aims to strengthen its position as a regional hub, fostering development and connectivity both within the state and beyond. The budget allocates Rs 20,000 crore in 2024–25 for a commitment to infrastructure development and social asset creation. The Assam-Mala scheme prioritizes the road connectivity by connecting highways with rural and urban settlements through roads and bridges. It also aims to upgrade and expand road networks, enhancing accessibility and mobility across the state. This initiative boosts economic growth and facilitates smoother transportation for residents and businesses.

Assam focuses on primary sector reform to bolster agriculture, forestry, and allied industries. Initiatives include modernizing farming techniques, promoting organic practices, and enhancing market access for farmers. By prioritizing this sector, the state aims to increase productivity, income, and overall sustainability for rural communities. Through the Rural Infrastructure Development Fund (RIDF), the state will establish hatchery centers. Assam is promoting the mechanization of agriculture and enhancing post-harvest management techniques. Through the adoption of modern machinery and equipment, farmers can increase efficiency and productivity. Effective post-harvest practices, including proper storage and processing facilities, help minimize losses and ensure better market access, improving overall agricultural sustainability and profitability.

The Assam budget seeks to foster a cultural renaissance by allocating funds to preserve and promote the state’s rich heritage. Investments in cultural institutions, festivals, and heritage sites aim to revitalize traditions and strengthen cultural identity. This will support tourism, community engagement, and socio-economic development, as well as enhance Assam’s cultural vibrancy. In order to encourage big-screen Assamese cinema, the Assam government has expressed an intention to provide a grant of Rs 10 lakh to full-fledged Assamese cinemas. Again, to support artistes and technicians in Assamese cinema and mobile theatre by bringing them under the Atal Pension Yojana, the state government will be paying 50% of their contribution for five years.

Assam should prioritize infrastructure development, skill enhancement, and promoting local industries like agriculture, tourism, and handicrafts to become self-reliant (Atmanirbhar). By investing in these areas, Assam can create employment opportunities, boost economic growth, and reduce dependency on external resources, thus achieving sustainable development and prosperity for its people. Assam should adhere to the Fiscal Responsibility and Budget Management (FRBM) Act to maintain control over fiscal and debt measures. By adhering to FRBM, it can ensure a sustainable economy, manage government borrowing, and prioritize long-term financial stability, fostering economic growth and development in the state. In conclusion, Assam’s budget reflects a commitment to inclusive growth, infrastructure development, and sustainable economic practices. Through strategic allocation of resources and adherence to fiscal discipline, the state aims to foster prosperity, enhance social welfare, and achieve long-term economic stability for all its citizens.