Assam budget targets revenue leaks: Jayanta Malla Baruah

Guwahati: Assam finance minister Jayanta Malla Baruah said that focus of the state budget 2026-27 presented on Friday is on plugging the leakages in the revenue front.

Talking to ET, the finance minister said this budget has not levied any new tax, “Focus is to augment revenue generation plugging leakages. We are deploying technology to plug the leakages and ensure that there is growth in revenue.”

Baruah who presented his first budget as Finance minister said that Assam has managed to attract Externally Aided projects in recent times. “We are doing big projects, and we are timely delivering utilisation certificate for the money spent and we are being able to bring Externally aided project.”


The finance minister added that capital expenditure has increased substantially. “Our capital expenditure is now pegged at Rs 27,000 Crore. We are taking revolutionary step in irrigation.”

Baruah said that fresh impetus is given for development of Guwahati. The budget has proposed the development of an Aerotropolis around the Lokpriya Gopinath Bordoloi International Airport as the nucleus. The new bridge over Brahmaputra near the airport will give further fillip to the urban growth. To accelerate implementation, budget allocated a sum of Rs. 2,100 crore for land acquisition of the Satellite City Project. We will need 7000 bighas of land for this project.”

Stating that this budget is roadmap for development for next five years, he said, “We are given lot of focus on tea sector, incentivising speciality tea and export-oriented tea.”

P.K. Bhattacharjee, Secretary General Tea Association (TAI) of India stated Government of Assam presented the Budget proposals for the FY: 2026-27 that is strong on capital expenditure, focus on long term sustainability and has provided fillip for the Tea industry in all sphere.



TAI stated the tea sector has been a backbone of the State economy and an extremely important sector from the employment generation perspective. The finance minister has made several proposals for the Tea industry and the workforce associated with it in his Budget proposals.


“The Assam Tea Industries Special Incentive Scheme (ATISIS) 2020, notified vide Notification No. FIF. 68/2019/147 dated 6th November 2020, has played a pivotal role in providing much-needed financial relief to tea producers through interest subvention, production-linked incentives for orthodox/speciality teas, and support for capital investment in factory infrastructure including Agricultural Income Tax holidays in last four years.


The proposal for increase in Orthodox subsidy under ATISIS 2020 from Rs. 10/- to Rs. 15/- per Kg, including of Matcha Tea under the eligible category of Orthodox & Speciality tea and introduction of subsidy for export oriented quality Assam CTC tea will encourage export and increase foreign exchange earnings. The lowering of VAT from 14.5% to 5% on piped natural gas shall reduce cost of production of the Tea Estates connected with piped natural gas,” TAI stated.

TAI added the proposal to launch the Assam Tea and Golf Trail, a unique tourism initiative integrating Assam's globally renowned tea estates with its championship golf courses will create a world-class experiential tourism circuit. The initiative, which is to be developed in partnership with tea estates, the tourism and hospitality sectors, and local communities, aims to promote tea tourism, attract high-value domestic and international tourists, and generate additional economic opportunities for the tea industry.

The proposal to strengthen Tea Garden Hospitals by improving infrastructure, diagnostics, medicines, medical equipment, and deployment of dedicated doctors & healthcare personnel along with proposal to strengthen last-mile healthcare delivery through Atal Mobile Medical Units, Arogya Biman medical drones, Hospital Ships, Jan Aushadhi Kendras, and expanded telemedicine services, with coverage extending to tea garden areas and other remote regions are encouraging. Continuing compensation of Rs. 15000/- under Wage Compensation scheme for pregnant women of tea garden areas of Assam, garden shall ensure better maternal care and nutrition.

TAI added the proposals for social welfare activities inside the tea garden such as construction of Mahaprabhu Jagannath Community Hall cum Skill Centres, construction of houses under PMAY-G, Construction of model high schools in tea gardens, pucca roads in labour lines etc will go a long way in development of tea garden community.

Tea Association of India along with the entire Tea industry hereby lauds the Government Assam for the one of the most progressive and forward-looking Budget for the Tea industry in Assam. The combined impact of all the measures should augur well for the Tea Industry both from its existential and viable aspects.