From Masur Dal to Rs.27,000 Cr Semiconductor Plant: Assam’s Rs.62,294 Cr Interim Budget Explained

Guwahati: In a politically significant session of the 15th Assam Legislative Assembly, Finance Minister Ajanta Neog on Tuesday presented a Vote-on-Account for the upcoming financial year, securing approval for essential expenditure from April to July 2026.

The proceedings of the final session entered their second day, starting with the customary Question Hour, as lawmakers deliberated over policy priorities, governance issues, and urgent constituency concerns amid the approach of state elections. The interim financial proposal ensures continuity in administrative functioning and ongoing development programmes until a new government presents a full state budget post-polls.

Addressing the House, Neog reflected on her five-year tenure as Assam’s first woman Finance Minister under the leadership of Chief Minister Himanta Biswa Sarma, highlighting the government’s guiding philosophy rooted in Pandit Deendayal Upadhyaya’s Integral Humanism and Dr. Shyama Prasad Mukherjee’s cultural nationalism. She underscored that her budgets, including the first during the COVID-19 crisis, prioritized the well-being of citizens while laying foundations for a self-reliant and developed Assam, aligned with Prime Minister Shri Narendra Modi’s vision of “Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas.”

Economic Transformation: Assam Emerges as India’s Fastest-Growing State

Neog outlined Assam’s remarkable economic growth over the last five years. The state’s Gross State Domestic Product (GSDP) at current prices is projected to rise from Rs.4,10,724 crore in FY 2021–22 to Rs.7,45,293 crore in FY 2025–26, reflecting over 17% growth, while the Economic Survey estimates Rs.8,71,451 crore for FY 2026–27 with a growth rate of 16.93%. Assam is poised to become a ten-lakh-crore economy by 2028, ahead of the earlier target of 2030.

The per-capita income has more than doubled, from Rs.86,947 in FY 2020–21 to Rs.1,85,429 in FY 2025–26, marking 113% growth. Own Tax Revenue rose by 75% from Rs.17,134 crore in FY 2020–21 to Rs.30,052 crore in FY 2024–25, reducing dependency on central transfers, while the overall state budget expanded from Rs.72,573 crore in FY 2015–16 to Rs.1,55,985 crore in FY 2025–26, with revised estimates touching Rs.2 lakh crore. Importantly, budget utilization improved from 58% in 2015–16 to 85% in 2024–25, reflecting efficient governance and focus on productive expenditure.

Capital expenditure witnessed an eightfold jump, from Rs.2,951 crore in FY 2015–16 to Rs.26,409 crore in FY 2024–25, supported by over Rs.25,000 crore from the central government under Special Assistance to States for Capital Investment. Borrowing has been prudently managed, with cumulative capital expenditure of Rs.1,04,896 crore since FY 2021–22 and a debt-to-GSDP ratio of 25.52%, positioning Assam 21st among 28 states. Externally Aided Projects grew from Rs.15,000 crore in 2021 to Rs.56,000 crore, while the Credit Deposit ratio improved from 56.09% in March 2021 to 74.48% in December 2025, facilitating priority sector advances of Rs.3,69,343 crore in agriculture, MSMEs, and allied sectors.

Neog highlighted the state’s public sector wealth exceeding Rs.35,000 crore, with strategic investments like Numaligarh Refinery Limited valued at Rs.5,100 crore. Cash reserves of nearly Rs.10,000 crore have fortified Assam’s fiscal strength, reflecting a shift from survival to sovereign resilience.

Peace, Security, and Social Stability

The Finance Minister emphasized Assam’s peace and stability, achieved through four historic peace accords with ULFA, Karbi, Adivasi, and DNLA groups, facilitated with the support of Union Home Minister Amit Shah. The Union Budget 2026–27 earmarked Rs.500 crore as the first tranche of a Rs.5,000 crore development package under the ULFA peace accord, complemented by Rs.3,000 crore from state resources for infrastructure and rehabilitation.

Since 2021, 9,022 former cadres surrendered 1,012 sophisticated weapons, rehabilitated under the Surrender-cum-Rehabilitation framework with financial support including Rs.4 lakh fixed deposits, monthly stipends, and livelihood assistance. Border disputes have been resolved through inter-state agreements with Meghalaya (2022) and Arunachal Pradesh (2023), and the Armed Forces Special Powers Act now applies only to three districts. Over 1.45 lakh bighas of encroached land have been recovered, and over 24,000 drug-related arrests made, seizing drugs worth Rs.3,001 crore, seven times the recoveries between 2011–2015.

Police infrastructure and personnel have been strengthened with 5 new Commando Battalions, 22,606 recruits, 43,697 promotions, 112 modernized police stations, and the Lachit Barphukan Police Academy, creating a professional and citizen-friendly force. Assam ranks first in implementing the new Bharatiya Nyaya Sanhita with a 78.13% score.

Social Welfare and Inclusive Development

The state government has expanded flagship schemes to ensure inclusive growth. Orunodoi now reaches nearly 40 lakh families, including Divyangjan and transgender persons. Mukhyamantri Mahila Udyamita Abhiyaan has empowered 30.63 lakh women with Rs.10,000 seed capital per SHG member, producing 8.80 lakh Lakhpati Baideo. The Assam Microfinance Incentive and Relief Scheme supported 12.71 lakh small borrowers with Rs.2,304 crore.

In tribute to 200 years of Assam Tea, the Mukhya Mantrir Eti Koli, Duti Paat scheme provided Rs.5,000 each to over 6 lakh tea garden workers. Employment targets have been surpassed, with over 1.58 lakh government jobs created. The Chief Minister’s Atmanirbhar Asom Abhijan has delivered Rs.1 lakh per beneficiary to 25,000 people and Rs.2.5 lakh to 221 professionals, totaling Rs.750 crore.

Pension schemes have been enhanced: Old Age Pension from Rs.250 to Rs.400, Widow Pension from Rs.300 to Rs.1,250, covering over 8 lakh beneficiaries under NSAP and 11.59 lakh under SKKSBPA. Food security extends to 70.71 lakh families with subsidized staples including Masur Dal, sugar, and salt at Rs.100, while maternal and infant health improvements saw a 44% reduction in MMR, institutional deliveries at 97%, and support to 1.16 lakh pregnant women in tea gardens.

Healthcare has been bolstered through Ayushman Asom, with 7.17 lakh beneficiaries receiving cashless treatment, doubling medical colleges from 7 to 14 with Rs.5,500 crore investment in 10 more colleges adding 4,500 beds, and establishing the Assam Cancer Care Foundation in collaboration with Tata Trusts.

Education, Skill Development, and Youth Empowerment

Financial assistance for students has expanded under Mukhya Mantrir Nijut Moina Asoni and Nijut Babu schemes, supporting over 5.5 lakh girls and 47,428 boys respectively. Graduates and research scholars benefit under Jibon Prerana and Jibon Anuprerana, with support ranging from Rs.2,500 to Rs.40,000. Pragyan Bharti waived Rs.780 crore in admission fees for 3.5 lakh UG and PG students annually, while several colleges upgraded to Vishwavidyalayas.

Assam Skill University, Swahid Kanaklata Barua State University, and SU-KA PHA University have been established, alongside 118 Model High Schools, 500 Mahaprabhu Jagannath Community Halls, and 9,054 Model Anganwadi Centers, with 42,813 teacher transfers and 9,004 Grade III/IV employee relocations conducted transparently.

Sports initiatives under Khel Maharan identified 669 athletes for national and international training, while housing support programs Apun Ghar and Apun Bahan provided Rs.7,376 crore in housing loans and interest subsidies. Pension schemes and health coverage for government employees were strengthened through Unified Pension Scheme and 8th Pay Commission, while remuneration for Anganwadi workers, ASHA workers, and POSHAN cooks was enhanced.

Infrastructure and Industrial Development

Road infrastructure expanded dramatically with 767 km under Asom Mala at Rs.8,421 crore, 356 km national highways at Rs.1,887 crore, and 4,176 km of roads under flagship schemes at Rs.6,494 crore. Bridges increased from 3 to 8 functional structures, with 4 more under construction. The Guwahati-North Guwahati Bridge, Gateway of Guwahati, Jyoti-Bishnu Antarjatik Kala Mandir, and Lokapriya Gopinath Bordoloi Airport terminal are modernizing regional infrastructure.

Mega projects include the Rs.18,600 crore Gohpur-Numaligarh underwater tunnel, Maa Kamakhya Access Corridor, Unity Mall, Kaziranga elevated corridor at Rs.6,957 crore, Guwahati Ring Road, Silchar expressway, and the Kokrajhar–Gelephu railway line. Flood and erosion-resilient measures include 722.66 km of new embankments and 863 km of strengthened embankments, with breaches declining from 154 to 3 in 2025.

Industrial growth is anchored by the Tata Semiconductor Plant (Rs.27,000 crore), Numaligarh Refinery expansion, and the 12.7 LMT Brownfield Ammonia-Urea Complex at Namrup, while Advantage Assam 2.0 secured Rs.5.18 lakh crore in 296 mega MoUs. Tea industry support includes Rs.392 crore to 1,914 gardens, and farmers benefit from PM-KISAN, PM Fasal Bima, paddy procurement of 26.19 lakh MT, mustard and maize procurement, and price support measures. Fish production surged 80% to 5.29 lakh MT, while the Axom Adarxo Gram Yojana invested Rs.256 crore to develop 250 model villages.

Energy initiatives include 90,000 solar rooftops, 1,000 MW green power addition, and projects totaling 10,000+ MW, including Lower Kopili Hydro, solar-battery storage, pumped storage, and ultra-supercritical thermal projects, positioning Assam as a power-surplus state capable of supplying neighboring regions.

Culture, Heritage, and Environment

Cultural programs include the 100th birth anniversary of Kanaklata Barua, 400th anniversary of Lachit Borphukan, and 100th birth anniversary of Dr. Bhupen Hazarika, along with Guinness-record-setting Bihu (11,369 performers), Mega Jhumoir (8,000 artists), and Bagurumba Dwhou (10,000 Bodo artists). Heritage projects include Vrindavani Vastra return, Charaideo Maidams, and Srimanta Sankardeva Abirbhav Kshetra.

Environmental initiatives include the Amrit Brikshya Andolan (1.11 crore seedlings, 10 Guinness World Records), Mission Amrit Sarovar (2,963 water bodies, Rs.662 crore), and the Gaja Mitra Scheme with AI-enabled camera traps. Rhino poaching has been curtailed to near zero.

Outlook and Vote-on-Account Approval

Neog concluded that Assam is transitioning into a Viksit, Atal-Avichal-Agragami state, with a renewed focus on youth employment through CMAAA, women empowerment, education, skill development, industrial growth, and infrastructure expansion. The Vote-on-Account for FY 2026–27, amounting to Rs. 62,294.78 crore, was placed before the House to ensure uninterrupted government services, pending the full budget.

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