Guwahati, March 10: Finance Minister Ajanta Neog, on Monday, tabled the state budget for the financial year 2025-26, projecting an estimated surplus of Rs 1,954.68 crore, despite a closing budget deficit of Rs 620.27 crore.

The estimated receipt for the financial year stands at Rs 2,62,913.92 crore, while the total expenditure is projected at Rs 2,60,959.24 crore, resulting in a budget surplus of Rs 1,954.68 crore.

However, after adjusting the opening deficit of Rs 2,574.95 crore, the financial year is expected to close with a budget deficit of Rs 620.27 crore.

Several key departments have received record-high allocations as the government aims to drive large-scale development in the state.

The budget places a strong emphasis on tax relief, industrial support, and infrastructure development.

In a major relief for the middle class, the government has announced an exemption on Professional Tax for individuals earning up to Rs 15,000 per month under the Assam Profession, Trades, Callings, and Employments Taxation Act, 1947.

Neog said that this move will benefit over 1.43 lakh taxpayers and enhance their purchasing capacity. “The government recognises the need to support hardworking middle-class families, and this tax exemption will significantly ease their financial burden,” Neog said during her speech.

Further, the government has announced a reimbursement of State Goods and Services Tax (SGST) for traders engaged in the bell metal industry, which has been facing severe challenges. Neog informed that a detailed notification for this reimbursement will be issued by May 2025.

“The bell metal industry has long been an integral part of Assam's traditional economy. The government is committed to supporting it by ensuring that traders receive financial relief through SGST reimbursements,” she said.

Assam’s borrowing & debt-to-GSDP ratio

The government has maintained that Assam’s debt-to-GSDP ratio remains within manageable limits. At 24.3%, it is lower than 18 other states, including Punjab (41.4%), Himachal Pradesh (41.1%), and Arunachal Pradesh (36.5%).

Major Sources of Revenue for 2025-26:

Increased capital investment & borrowing trends

Despite the budget deficit, the government has prioritised capital expenditure, with the allocation increasing eightfold since FY 2015-16.

Notably, Assam has been one of the highest beneficiaries of the Centre's Special Assistance to States for Capital Investment (SASCI) scheme, receiving over Rs. 18,500 crore under this initiative.

Government’s justification for the deficit

The finance minister highlighted that Assam’s borrowing is strategically focused on capital expenditure rather than covering revenue shortfalls, ensuring long-term economic growth.

The budget utilisation rate has steadily improved, reaching 85% in 2024-25, indicating more effective spending.

The government has highlighted that its fiscal strategy balances development needs with financial discipline, ensuring sustainable economic growth while keeping the deficit under control.