Assam removes austerity measures, announces infrastructure projects worth Rs 11, 900 cr

Buoyed by the commitment from union finance minister, Nirmala Sitharaman that GST compensation will be paid and there will flow fund to meet the revenue deficit grant, Assam has removed the austerity measures and announced infrastructure projects worth Rs 11, 900 Crore.

Assam finance minister, Himanta Biswa Sarma said, "Recently I met the union finance minister, new compensation formula for GST and continued release of revenue deficit grant will enhance state government’s capacity of spending tremendously.”

He added, “In the month of April we have discounted, we have thought revenue deficit grant will not come and government of India will not be able to pay GST compensation. The finance minister reconfirmed that she will honour all the mandate of finance commission and repay for the loan which Assam will take for GST compensation.”


Stating that Assam has opted for formula –one as suggested by the finance minister, Sarma added, “We are in comfortable position. Comfortable not for spending Left and right but comfortable to meet the budgetary commitments”.

Following COVID-19 pandemic Assam has put in place astute austerity measures, barring few the government on Saturday decided to waive off the measures.

Sarma said, “The bar on refund for industries from state government is removed. However provisions like purchasing any new vehicle without prior approval of the chief minister will continue”.

The finance minister added that bar on holding of exhibitions/seminars/ conferences/fair and functions in star category hotel will continue. No officer will be allowed to attend any foreign training course/workshop/seminar outside India for which expenditure has to be borne by the State Government.”

Assam government announced that construction work of four new medical colleges will start soon. The second medical college in Guwahati will be biggest in Eastern India.

Sarma said that state government will set up nine women colleges, six degree colleges, and ten law colleges besides two flyovers.

He added that 244 fast track corridors will be set up. “We are planning to construct another 12 roads and are in talks for external funding of these projects. We are in talks with Asian Development Bank and Asian Infrastructure Investment Bank (AIIB).”