Assam’s budget touches Rs 2 lakh crore, achieves 85 per cent fund utilisation: Himanta Biswa Sarma

Assam Chief Minister Himanta Biswa Sarma on Wednesday, April 1 highlighted the State’s fiscal performance for the financial year 2025–26, describing it as a model of “disciplined spending and growth-oriented governance,” with a sharp rise in budget size and record public expenditure.

In a post on X, the Chief Minister said Assam’s budget outlay had expanded to Rs 2 lakh crore in 2025–26, up from Rs 1.69 lakh crore in the previous financial year, signalling both enhanced fiscal ambition and improved execution capacity.

The State recorded a total public expenditure of approximately Rs 1.7 lakh crore during the year, the highest since Independence. Sarma underlined that while it took over seven decades for Assam to cross Rs 1 lakh crore in expenditure, the jump to nearly Rs 1.75 lakh crore was achieved within just four years, indicating a significant acceleration in fiscal capacity.

A substantial portion of the spending, around Rs 26,500 crore, was directed towards capital expenditure, marking the highest such allocation in the State’s history. The government maintained that investments in infrastructure such as schools, colleges, hospitals, roads, bridges, and digital systems are expected to generate long-term economic returns and strengthen growth fundamentals.

The Chief Minister also pointed to an 85 per cent fund utilisation rate, describing it as evidence of improved governance mechanisms. He noted that in earlier years, limited administrative capacity and planning constraints often led to underutilisation of funds and delays in development projects. In contrast, recent years have seen departments fully utilising allocations and, in some cases, seeking additional funds due to the availability of project pipelines and improved execution frameworks.

From a fiscal management perspective, the State government emphasised that Assam has maintained a balance between expansionary spending and fiscal discipline. It highlighted a higher share of productive capital expenditure, improved efficiency in fund utilisation, and enhanced institutional capacity to implement large-scale development projects.

Sarma said this approach has created a “virtuous cycle” where infrastructure investments drive economic growth while simultaneously improving social welfare outcomes. He added that Assam’s evolving fiscal trajectory has positioned it among the fastest-growing economies in the country.

The State government has increasingly focused on capital formation and administrative efficiency in recent years, aiming to sustain high growth while ensuring that public spending translates into tangible development outcomes.