Assam: State public expenditure crosses Rs 1 lakh crore

Staff Reporter

GUWAHATI: The public expenditure in the current financial year in the state has crossed Rs 1 lakh crore on January 30, 2025, compared to Rs 89,000 crore on January 30, 2024.

Commenting on this public expenditure, Chief Minister Dr. Himanta Biswa Sarma said, “It’s a significant milestone. Congratulations to the Finance Department for achieving remarkable growth and effective financial management!”

Public expenditure is used to improve living standards, economic productivity, and social justice. This is how governments spend money to fulfil their responsibilities to citizens. Public expenditure can be used to invest in infrastructure, education, healthcare and social welfare. Public expenditure can be funded through taxes, public debt, internal aid, and money missions.

Budgetary expenditure in the state is also on an increasing trend. It was Rs 41,931 crore in 2015-16, and it increased to Rs 1.27 lakh crore in 2022-23. Parallelly, capital expenditure is also maintaining an increasing trend—Rs 2,951 crore in 2015-16 and Rs 16,338 crore in 2022-23.

According to sources, the government lays stress on capital expenditure because it is the creation of assets. The state has successfully tapped RIDF (Rural Infrastructure Development Fund) and EAP (externally-aided projects) for earmarked capital projects. The funds mobilised for capital expenditure under RIDF and EAP have shown an overall increase of 177 percent and 437 percent, respectively, in the past years. With total projects worth Rs 58,064 crore, Assam stands as one of the biggest beneficiaries of EAPs.

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