Assam Budget 2026-27: Spotlight falls on polygamy after big announcement by state FM Jayanta Malla Baruah

Guwahati: Assam’s Finance Minister Jayanta Malla Baruah, while presenting the state budget for 2026-27, stated that any male practising polygamy would not be eligible for government schemes. Service rules would be amended so that any government servant found to practice polygamy would be liable for dismissal from service. The budget has proposed to levy green cess on environmentally-sensitive industries.

Presenting the first budget of the newly-elected NDA government in Assam, Baruah said the government would provide 2 lakh government jobs in five years. “A dedicated Task Force under the Chief Secretary has been constituted to prepare a comprehensive roadmap.”

The budget proposed to levy a green cess on stone crushers, coke-based industries, brick kilns, transfer of second-hand vehicles, commercial extraction of groundwater and environmentally sensitive industries as notified by the government. The proceeds from this cess will be utilised for afforestation, pollution control, biodiversity conservation, climate adaptation, green energy and water resource management.


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“I also propose to extend the Apon Bahan scheme for five years and enhance interest subvention for electric vehicles to 4%. Our employees will get Motor Vehicle Tax subvention benefits on EV meant for the public,” the finance minister said.

The government will start distribution of subsidised masur dal and sugar to NFSA ration card holders from August. As prices of these essential commodities have risen due to the West Asia crisis, the subsidy amount would vary and linked to market prices. “We will examine the feasibility of bringing mustard oil into this basket in due course. Our government prefers to promote locally-produced mustard oil,” Baruah said.

He said, “the extension of the railway line up to Umrangso will be pursued. Assam’s power sector is entering a transformational phase, with investments of over Rs 77,353 crore planned across hydro, solar, thermal and energy storage projects—the largest such investment in the state’s history. Highest priority has been accorded to Pumped Storage Power (PSP) projects to ensure large-scale renewable energy integration and sustainable industrial growth. Four PSP projects with a combined capacity of 4,900 MW and estimated private investment of nearly Rs 27,100 crore, have been approved. The development of an Aerotropolis around the Lokpriya Gopinath Bordoloi International Airport as the nucleus is proposed. To accelerate implementation, Rs 2,100 crore for land acquisition of the Satellite City Project has been proposed.”

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The budget proposed to incentivise boost Assam tea exports. Matcha Tea shall be included within the eligible category of orthodox and specialty tea. The first lot was sold through the Guwahati Tea Auction Centre at nearly Rs 3,000 per kilogram. The production subsidy for orthodox and specialty tea will be enhanced from Rs 10 per kg to Rs 15 per kg. A new subsidy of Rs 3 per kg will be introduced for export-oriented and premium-quality Assam CTC tea.

Baruah announced, “Necessary legislative and administrative amendments in the existing framework to strengthen land reforms and ensure that land allotments are made only to persons whose families have been living in Assam for at least three generations will be made. The entire proceeds of the Agricultural Income Tax collected from tea industries shall be earmarked for the welfare and development of tea garden communities.”

The budget has proposed two weeks of paternity leave for government employees.

To promote tourism “eligible homestays registered centrally will receive a 30% capital subsidy and 2% interest subvention. Establishment of five-star hotels at Umrangso, Haflong and Manas has been proposed. Eligible projects will receive a 30% capital subsidy along with SGST reimbursement and interest subvention as per the extant guidelines. A feasibility study for integrating a metro system over or alongside the Guwahati Ring Road has been proposed. There is a proposal to encourage entrepreneurs to establish authentic Assamese food outlets in the capital city of every state and Union Territory across India. These outlets will be owned and run entirely by entrepreneurs and the government will facilitate a common menu, common logo and shared brand identity”.

The budget stated that, “building on the momentum of Tata Electronics’ OSAT facility at Jagiroad, the government is committed to positioning Assam as India’s leading semiconductor hub. In partnership with Japan International Cooperation Agency (JICA), we propose to launch the Assam Semiconductor Ecosystem on Manufacturing and Innovation (A-SEMI) project with an estimated outlay of Rs 1,164 crore, over five years.”

The government also proposed to launch the Assam Tea and Golf Trail, a unique tourism initiative that brings together Assam's globally renowned tea heritage and distinctive golf courses into a world-class experiential tourism circuit. Developed in partnership with tea estates, the tourism and hospitality sectors and local communities, this initiative will strengthen Assam’s position as a premier destination for high-value domestic and international travellers. The government will also introduce the Assam Cultural Integration Festival (in line with Nagaland's Hornbill Festival) to promote cultural harmony, unity and tourism.

“To provide relief to small tea growers, Agricultural Income Tax exemption threshold will be raised from Rs 2.5 lakh to Rs 10 lakh of the annual agricultural income,” Baruah announced.

There is a proposal to extend exemption from Electricity Duty on captive consumption of electricity generated from renewable energy sources for a further period of three years, from April 1, 2026 to March 31, 2029. To reduce household energy costs, promote cleaner fuel and support city gas expansion, VAT on Piped Natural Gas is proposed to be cut from 14.5% to 5%.

Considering the expenditure of Rs 12,6369.57 crore under Public Account and Rs. 2000 crore under Contingency Fund, the aggregate expenditure for the year is estimated at Rs 285084.45 crore. Thus, estimated transactions during the year will result in an estimated surplus of Rs 3225 crore. This, together with the opening deficit of Rs 3644.26 crore will lead to a Budget deficit of Rs 419.26 crore at the end of the financial year 2026-27. The Budget for FY2026–27 targets a fiscal deficit of 3% of the state's projected GSDP.