Assam’s Rs 2,85,084.45 crore Budget for 2026-27 prioritizes fiscal discipline with a 3% deficit target while introducing sector-specific incentives, including a fourfold tax relief for small tea growers and a new ‘green cess’ on polluting industries. The plan also commits to 2 lakh public sector jobs over five years, signaling a dual focus on economic growth and environmental accountability.

Tea Sector Incentives: Tax Cuts and Export Push

The Budget raises the agricultural income tax exemption threshold for small tea growers from Rs 2.5 lakh to Rs 10 lakh annually, effective April 1, 2026. Larger assessees will see taxes restored, with additional revenue earmarked exclusively for tea garden community welfare. This follows a sharp 80% rise in orthodox tea production—from 4.39 crore kg in 2021-22 to nearly 8 crore kg in 2025-26.

To boost value addition, Matcha tea will now qualify for subsidies alongside orthodox and specialty teas. Key measures include:

  • Production subsidy for orthodox/specialty tea increased from Rs 10/kg to Rs 15/kg
  • New Rs 3/kg subsidy for export-oriented Assam CTC tea
  • First Matcha tea lot sold at ~Rs 3,000/kg via Guwahati Tea Auction Centre

Energy and Environmental Measures

To accelerate clean energy adoption, VAT on piped natural gas (PNG) will drop from 14.5% to 5%, aligning with Assam’s expansion of PNG networks in Guwahati, Dibrugarh, and other key regions. Over 13,500 domestic connections and 46 CNG stations are already operational.

The Budget introduces a ‘Green Cess’ on polluting sectors—stone crushers, coke-based industries, brick kilns, and groundwater extraction—though specific rates remain undisclosed. Proceeds will fund afforestation, pollution control, and green infrastructure.

Employment and Social Welfare

Building on 1.64 lakh appointments over the past five years, Assam aims to create 2 lakh jobs across government departments, universities, and state-linked entities. A chief secretary-led task force will map vacancies and new posts, with a focus on police, education, and healthcare.

Welfare schemes, paused during elections, will resume in August with a Rs 6,000 crore allocation. However, benefits will exclude polygamists and convicted criminals, with government employees practicing polygamy facing dismissal under amended service rules.