Himanta Biswa Sarma: Assam sees 450 per cent surge in capital expenditure

Chief Minister Himanta Biswa Sarma took to social media on February 8 to announce a staggering surge in the state's capital expenditure. Revealing an astounding 450 per cent rise over the past decade, Sarma heralded this monumental leap as a harbinger of accelerated growth and an expanded economy for the northeastern state.

"Assam's economy is on a trajectory of resilience, resurgence, and robustness," said Sarma, underlining the state's remarkable financial ascent. He stated that the surge in capital expenditure, coupled with a judicious blend of internal revenue, augmented central support, and structured borrowings has propelled Assam into the echelons of rapid economic development.

At the forefront of this economic upswing is Assam's bold vision for growth, symbolized by its anticipated Gross State Domestic Product (GSDP) of Rs 6.39 lakh crore in the fiscal year 2024-25. With a commendable GSDP growth rate of 14.7 per cent, the state is poised to emerge as a formidable growth center in the region.

Highlighting the tangible impact of increased capital expenditure, Sarma cited the exponential rise from Rs 4,543 crore in 2014-15 to Rs 16,338 crore in 2022-23. This substantial investment, he noted, is driving a plethora of infrastructure projects aimed at enhancing connectivity, healthcare, education, and other critical sectors across Assam.

Despite the ambitious expansion, Sarma reassured that Assam maintains fiscal prudence, with a Debt-GSDP ratio standing at 23.47 per cent as of 2022-23, well below the statutory ceiling of 32 per cent mandated under the Fiscal Responsibility and Budget Management Act. This favorable debt profile positions Assam to avail additional loans for sustaining its developmental initiatives.

Chief Minister Sarma expressed confidence in Assam's trajectory, envisioning a future characterized by prosperity and progress. With a steadfast commitment to solid fundamentals and a conducive policy framework, Assam marches resolutely towards realizing its vision of a 'Viksit Assam' - a state synonymous with growth, opportunity, and prosperity.