Assam Budget 2025-26: Brief summary of Schemes & Allocation

Assam Budget 2025-26: Schemes-Focused Overview

The Assam Budget 2025-26, presented by Finance Minister Smt. Ajanta Neog on March 10, 2025, is a strategic blueprint for transforming Assam into a developed and inclusive state under the Viksit Assam vision. With a total outlay of Rs. 262,913.92 crore, the budget emphasizes sustainable development, fiscal discipline, and alignment with Sustainable Development Goals (SDGs). This overview dedicates approximately 75% of its content to detailing the budget’s flagship and sectoral schemes, with a brief summary of the economic and fiscal context, making it an essential resource for competitive exam aspirants (e.g., UPSC, APSC) and readers interested in Assam’s transformative initiatives.

1. Economic and Fiscal Overview

Economic Performance

• GSDP Growth: Assam’s Gross State Domestic Product (GSDP) grew by 6.8% in 2022-23 (Provisional Estimates), outperforming national averages: 21% (2021-22), 17% (2022-23), and 19% (2023-24) compared to India’s 19%, 14%, and 10%, respectively.
• Infrastructure Achievements: Over 13 km of paved roads and 9 pipeline projects worth Rs. 16,729 crore have enhanced connectivity.
• Ease of Doing Business: Assam ranks competitively, with scores similar to Andhra Pradesh (28.0), Tripura (27.6), and Haryana (27.5).

Fiscal Framework

• FRBM Compliance: Assam adheres to the Fiscal Responsibility and Budget Management (FRBM) Act, 2011, and its 2017 amendment, maintaining no revenue deficit. The fiscal deficit for FY 2023-24 was Rs. 11,154.5 crore, within limits.
• Debt Management: The debt-to-GSDP ratio is below the 14th Finance Commission’s 10% recommendation, supported by strategic market borrowings.
• Revenue and Expenditure: Non-tax revenue grew at 13.5% annually over seven years, but high salary and pension costs raise sustainability concerns. Capital expenditure supports infrastructure growth.

2. Sectoral Schemes and Allocations

The Assam Budget 2025-26 prioritizes transformative schemes across key sectors, driving inclusive growth, infrastructure development, and social welfare. Below is a detailed exploration of these schemes, their objectives, and allocations, which form the core of the budget’s vision.

Agriculture and Allied Activities

• Mukhyamantri Krishi Bikash Yojana: This flagship scheme aims to enhance farm income by promoting agricultural modernization, providing farmers with access to advanced tools, seeds, and irrigation facilities. It supports crop diversification and sustainable farming practices to boost productivity.
• Mustard Production Boost: To empower local farmers, the budget sets Minimum Support Prices (MSPs) at Rs. 2,550 for paddy, Rs. 2,475 for maize, and Rs. 6,450 for mustard, ensuring better returns and encouraging mustard cultivation as a high-value crop.
• Paddy Procurement in Elephant-Foraging Areas: This innovative scheme protects farmers in regions prone to human-elephant conflict by ensuring government procurement of paddy, reducing crop losses and supporting livelihoods.
• Fortified Rice Kernel (FRK) Blending Machines: Enhances nutritional security by fortifying rice distributed through public distribution systems, addressing malnutrition in rural and urban areas.
• Gaja Mitra Teams: Formed in elephant-prone regions, these teams mitigate human-wildlife conflict, complementing agricultural support by ensuring farmer safety.
• Allocation: Rs. 420 crore for agricultural welfare, including MSP support and farmer empowerment. The Fishery Department receives Rs. 155 crore for allied activities like aquaculture development.

Finance

• Mukhyamantri Atmanirbhar Asom Abhijan: A landmark self-employment scheme targeting 30 lakh Self Help Group (SHG) members, it provides cash transfers to promote entrepreneurship, particularly among women and rural communities. The scheme fosters financial independence and local economic growth.
• Orunodoi Scheme: Expanded to cover 4.3 lakh girls, this scheme offers financial assistance to support education and empowerment, reducing gender disparities and encouraging higher education among economically vulnerable groups.
• Interest Subvention Scheme: Provides a 4% interest subvention on loans up to Rs. 10 lakh, making credit affordable for small businesses and startups, thereby stimulating economic activity.
• Excise Policy Reforms: Adjusts excise slabs to curb premium liquor imports, boosting local revenue and supporting fiscal sustainability.
• Allocation:
  • Finance Department: Rs. 35,298 crore, the largest sectoral allocation, reflecting its role in funding welfare and economic initiatives.
  • Excise Department: Rs. 163 crore for implementing revenue-enhancing measures.

Forests, Environment, and Natural Resource Management

• Eco-Tourism Promotion: Leverages Assam’s rich biodiversity, including Kaziranga and Manas National Parks, to develop sustainable tourism. The scheme creates jobs and promotes environmental conservation while showcasing Assam’s natural heritage.
• Geographical Indication (GI) Certification: Secured for 21 products, including Aronai, Dokhona, and Eri Silk, this initiative promotes eco-friendly and culturally significant products, enhancing their market value and supporting artisans.
• Wildlife Protection: Investments in conservation efforts protect Assam’s biodiversity, aligning with SDG 15 (Life on Land).
• Allocation: Specific funding is included in the Environment & Forest Department’s budget, supporting eco-tourism, GI certification, and conservation initiatives.

Human Development and Social Welfare

• Education Support: Offers Rs. 25,000 grants for research scholars and up to Rs. 5 lakh for professional degrees, encouraging higher education and skill development. The scheme targets students across state and central universities.
• Health Initiatives:
  • Proton Therapy Centre: A state-of-the-art facility for advanced cancer treatment, improving healthcare access.
  • Ayushman Bharat Expansion: Provides healthcare through Arogya Mandirs, mobile medical units, and PPP hospitals, ensuring universal health coverage.
  • Assam Cancer Care Foundation: Collaborates to enhance cancer care infrastructure.
• Women & Child Development: Targets a 40% reduction in anemia among young children and supports 31.75 lakh children with nutritional programs, addressing malnutrition and child welfare.
• Transgender Inclusion: Establishes a dedicated shelter home in Guwahati, promoting inclusivity and social justice for marginalized communities.
• Allocation:
  • School Education: Rs. 18,733 crore, supporting initiatives like teacher recruitment and educational grants.
  • Health and Family Welfare: Rs. 5,393 crore, funding advanced healthcare infrastructure.
  • Women & Child Development: Rs. 4,449 crore, focusing on nutrition and empowerment.
  • Social Justice and Empowerment: Rs. 417 crore, supporting inclusive schemes.

Public Works

• Mukhyamantri Unnoto Pakipath Nirman Achani: A major infrastructure scheme, it has approved 3,357 km of roads, with 741 km completed, enhancing rural and urban connectivity.
• Urban Infrastructure: Includes a flyover in Silchar and new townships in Jagiroad and Palashbari, supported by Asian Development Bank (ADB) assistance, to promote urban development.
• Dibrugarh as Second Capital: Develops an Assembly building and MLA hostel to establish Dibrugarh as a key administrative hub.
• Cultural Infrastructure: The Lachit Borphukan Museum and Swahid Smarak Kshetra preserve Assam’s historical legacy.
• Allocation:
  • Public Works (Roads): Rs. 10,200 crore.
  • Public Works (Buildings & NH): Rs. 3,285 crore.
  • Dibrugarh Assembly building: Rs. 200 crore.

Rural Development

• Pradhan Mantri Awas Yojana-Gramin (PMAY-G): Provides housing support to rural households, promoting economic empowerment and better living standards.
• Panchayat & Rural Development: Implements MGNREGA and other schemes to enhance rural infrastructure, create jobs, and improve livelihoods.
• Nutritional Support: Covers 31.75 lakh children under welfare programs, ensuring food security and health.
• Allocation: Panchayat & Rural Development: Rs. 7,470 crore.

Urban Development, Transport, and Housing

• Sewage/Septage Management in Dibrugarh: Improves urban sanitation, enhancing public health.
• Water Body Rejuvenation: Targets 31 Urban Local Bodies (ULBs) to restore water bodies, supporting environmental sustainability.
• Drink From Tap Projects: Implements 24×7 water supply in Jorhat, Karimganj, Hailakandi, and Silchar, ensuring clean water access.
• Beneficiary-Led Construction (BLC): Provides financial assistance for housing under PMAY, targeting urban poor.
• Night Navigation Systems: Enhances transport connectivity through operational river navigation systems.
• Allocation: Housing & Urban Affairs: Rs. 2,704 crore.

Industrial Development

• AI-Driven, Blockchain-Based Tea Auction System: Revolutionizes the tea trade by ensuring transparency and efficiency, benefiting Assam’s tea industry.
• Startups, Incubation, and Innovation: Promotes sustainable technologies like banana fiber-based packaging and supports entrepreneurship.
• 3D Printing Centre of Excellence: Established at Tech City to advance manufacturing and innovation.
• Industrial Area Local Authority (IALA): Acts as a single-window authority to streamline industrial approvals and attract investments.
• Allocation:
  • Industries and Commerce & Public Enterprises: Rs. 2,471 crore.
  • Innovation, Incubation, and Startups: Rs. 60 crore.

Indigenous and Tribal Faith and Culture

• Clause 6 of Assam Accord: Implements recommendations to protect indigenous communities, ensuring cultural and land rights.
• Majuli Cultural University: Promotes cultural education and heritage preservation.
• Multipurpose Cultural Complexes: Supports cultural activities and community engagement.
• Land Policy for Indigenous Communities: Issues 5 lakh digital land records to eligible settlers, securing land rights.
• Allocation: Indigenous and Tribal Faith and Culture: Rs. 58 crore.

Health and Family Welfare

• Proton Therapy Centre: Provides advanced cancer treatment, improving healthcare access.
• Ayushman Bharat Expansion: Enhances healthcare delivery through Arogya Mandirs, mobile medical units, and PPP hospitals.
• Medical Education Expansion: Increases MBBS seats from 726 to 1,600, PG seats from 386 to 722, and BDS seats from 40 to 170.
• Allocation: Health and Family Welfare: Rs. 5,393 crore.

Skill, Employment, and Entrepreneurship

• Recruitment Drive: Provides 1,60,596 jobs, including 5,550 new teachers in 2025-26, boosting employment.
• Nirmaan Sakhi: Facilitates online worker registration for skill development.
• UPSC/APSC Coaching: Supports 31 aspirants to prepare for competitive exams.
• Allocation: Skill, Employment & Entrepreneurship: Rs. 340 crore.

Other Key Schemes

• Ashtadash Mukutar Unnoyonee Maala: A flagship program for comprehensive development across sectors.
• Old Pension Scheme Restoration: Considers reinstating the old pension scheme for government employees.
• Tea Garden Worker Welfare: Provides Rs. 2 lakh per city for electricity dues and completes 118 tea garden schools.
• BWF World Junior Championships 2025: Assam will host this international event, promoting sports and tourism.
• Allocations:
  • Welfare of Bodoland: Rs. 4,160 crore.
  • Hill Areas: Rs. 3,076 crore.
  • Home Department: Rs. 8,291 crore, including new Border Outposts.
  • Food, Public Distribution & Consumer Affairs: Rs. 994 crore for food security.

3. SDG Alignment and Outcome Budget

• Outcome Budget: Links allocations to measurable outcomes, ensuring performance-based budgeting. It targets outcomes like reduced waterborne diseases and improved quality of life.
• SDG Integration: Schemes align with SDGs, including Gender Equality (SDG 5), Sustainable Cities and Communities (SDG 11), and Life Below Water (SDG 14). Key targets include reducing marine pollution and ensuring women’s leadership participation.

4. Exam-Relevant Insights

• Key Figures:
  • Total Budget: Rs. 262,913.92 crore.
  • Fiscal Deficit (2023-24): Rs. 11,154.5 crore.
  • Major Allocations: Finance (Rs. 35,298 crore), School Education (Rs. 18,733 crore), Public Works (Rs. 10,200 crore)

The Assam Budget 2025-26, with its robust schemes, positions the state as a leader in inclusive and sustainable development. From empowering farmers through Mukhyamantri Krishi Bikash Yojana to fostering innovation via the AI-driven tea auction system, the budget addresses diverse needs while ensuring fiscal prudence. For exam aspirants, it offers critical data and policy insights, while for readers, it showcases Assam’s journey toward Viksit Assam.

Data source: finance.assam.gov.in

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