Assam's budget nears Rs 2 lakh crore; per capita income more than triples in a decade

Assam has witnessed a significant transformation in its fiscal and economic landscape over the past decade, with the state's budget size expanding nearly threefold to Rs 2,00,782 crore in 2025–26, according to the state budget presented by Finance Minister Jayanta Malla Baruah.

The budget document states that budget utilisation has improved substantially from 58 per cent to a record 85 per cent, reflecting stronger implementation capacity and more efficient utilisation of public resources.

The government's fiscal strength has also improved considerably. Assam's Own Tax Revenue increased from Rs 12,848 crore in 2015–16 to Rs 39,294 crore in 2025–26, supported by stronger tax compliance, technology-driven governance and sustained economic growth. The share of Own Source Revenue in total revenue receipts has risen from 30 per cent to 36 per cent, with the government aiming to increase it to 50 per cent by 2031 to strengthen fiscal self-reliance.

The budget also highlights a sharp rise in capital expenditure, which increased from Rs 2,951 crore in 2015–16 to Rs 26,531 crore in 2025–26. The government has committed to maintaining annual capital expenditure growth of at least 10 per cent, focusing on productive and asset-creating investments.

The 16th Finance Commission has also recognised Assam's improved fiscal performance by increasing the state's inter-se share from 3.128 per cent to 3.258 per cent, a move expected to result in central devolution of around Rs 50,000 crore during the current financial year.

Assam has also significantly expanded its portfolio of Externally Aided Projects (EAPs). The number of projects has increased from 9 projects worth about Rs 7,500 crore during the 14th Finance Commission period to 21 projects worth nearly Rs 53,000 crore under the 15th Finance Commission. Total disbursements have risen from about Rs 3,748 crore to more than Rs 14,400 crore, while annual disbursements now exceed Rs 6,000 crore.

Despite the increase in development expenditure, the state has maintained fiscal discipline. The Debt-to-GSDP ratio stood at 24.81 per cent in 2025–26, well below the FRBM limit of 32 per cent, placing Assam among the fiscally prudent states in the country.

Institutional credit flow has also strengthened, with the state's Credit-Deposit Ratio increasing from 41.10 per cent in March 2016 to 73.52 per cent in March 2026, indicating that a larger share of deposits mobilised within Assam is now being deployed for productive economic activities.

Reflecting the broader impact of economic growth, the budget states that per capita income has more than tripled, rising from Rs 60,817 in 2015–16 to Rs 1,85,429 in 2025–26, indicating that Assam's growth story has become more broad-based and inclusive.