Assam Unveils Rs 419.26-Crore Deficit Budget with Major Tax Relief and Semiconductor Push

‘The government proposed to enhance the tax exemption threshold for agricultural income from Rs 2.50 lakh to Rs 10 lakh annually.’

Staff Reporter

GUWAHATI: Finance Minister Jayanta Mallabaruah tabled a Rs 419.26-crore deficit budget for the financial year 2026-27 in the Assam Legislative Assembly today. The budget targets a fiscal deficit of 3 per cent of the state's projected GSDP (Gross State Domestic Product).

The Finance Minister said, "The total expenditure from the consolidated fund of the state in 2026-27 is estimated at Rs 1,56,714 crore, of which Rs 1,18,562 crore is on revenue account and Rs 38,152 crore is on capital account."

The Finance Minister said that over the last decade, Assam had moved from instability to peace, from neglect to national priority, and from uncertainty to decisive development. "Our objective is to build a productive, inclusive and knowledge-driven Assam. Assam's remarkable transformation over the past five years reflects the visionary leadership and relentless execution of Chief Minister Dr Himanta Biswa Sarma. Assam's transformation is taking place at a time when the global economy continues to face uncertainty due to geopolitical tension, volatile commodity prices and shifting economic conditions. Assam's fiscal journey over the last decade has been remarkable. The budget size has expanded nearly three-fold to Rs 2,00,782 crore in 2025-26, while budget utilization has improved from 58 per cent to 85 per cent," he said.

Regarding taxation, the Finance Minister said, "The government proposed to enhance the tax exemption threshold for agricultural income from Rs 2.50 lakh to Rs 10 lakh annually." The government proposed spending the entire proceeds of the agricultural income tax collected from tea industries on the welfare and development of the tea communities. The government proposed to reduce VAT on piped natural gas (PNG) from 14.5 per cent to 5 per cent. The government also proposed launching the Assam Semiconductor Ecosystem for Manufacturing and Innovation Project with an estimated outlay of Rs 1,164 crore. the Assam tea and golf trial, a unique tourism initiative."

The finance minister said, "The government will undertake a feasibility study for integrating a metro rail system over or alongside the Guwahati Ring Road. The government is committed to positioning Assam as India's leading semiconductor hub, building on the momentum of Tata Electronics OSAT (semiconductor) facility at Jagiroad. In partnership with JICA (Japan International Cooperation Agency), the government proposed launching the Assam Semiconductor Ecosystem on Manufacturing and Innovation Project with an estimated outlay of Rs 1,164 crore. The Assam Semiconductor Ecosystem for Manufacturing and Innovation Project has an estimated outlay of Rs 1,164 crore."

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