Assam Budget 2025: Comprehensive Initiatives for Economic Growth and Social Welfare

On March 10, 2025, Assam’s Finance Minister, Ajanta Neog, presented the state’s budget for the fiscal year 2025-26, outlining a comprehensive plan aimed at fostering economic growth, enhancing infrastructure, and promoting social welfare. The budget, totaling ₹2.63 lakh crore, reflects the government’s commitment to balanced development across various sectors.

Key Allocations and Initiatives

1. Finance Department The Finance Department has been allocated ₹35,301 crore, underscoring the state’s focus on economic resilience and financial reforms. This allocation aims to strengthen Direct Benefit Transfer (DBT) infrastructure, expand e-collection and e-payment systems, and improve the credit-deposit ratio to align with the national average of 78%. Additionally, the government has signed Memorandums of Understanding (MoUs) with scheduled commercial banks to offer zero-premium insurance for over 4 lakh government employees, ensuring coverage of up to ₹2 crore.
2. Education Sector With an allocation of ₹18,733 crore, the School Education Department aims to enhance educational infrastructure and promote inclusive education. Key initiatives include expanding the PM POSHAN Scheme to benefit over 31.75 lakh children, providing free bicycles to over 3.23 lakh Class IX students under the Dr. Banikanta Kakati Merit Award, and supplying free textbooks and uniforms to 12 lakh students. The government also plans to recruit 5,550 new teachers and modernize classrooms with smart technologies.
3. Healthcare Enhancements The Health & Family Welfare Department has received ₹5,393 crore to improve rural healthcare and maternal health services. Initiatives include launching the “Healthy Garden Population – Comprehensive Health Screening” pilot project across 20 tea gardens, expanding Pediatric Intensive Care Units (ICUs), establishing Kangaroo Mother Care Units, and increasing the number of Special Newborn Care Units (SNCUs) across districts. To attract specialist doctors to remote areas, the “Durgam to Sugam” initiative offers financial incentives to medical professionals serving in underprivileged regions.
4. Infrastructure Development The Public Works Department (PWD) has been allocated ₹10,200 crore, focusing on developing all-weather road connectivity, urban roads, and high-speed expressways. Under the Mukhyamantir Pakipath Nirman Achani, 1,361 km of roads have been completed, with an additional 4,846 km of rural roads approved. The Mukhyamantir Path Nobikaran Achani will facilitate repairs of over 3,555 km of rural and urban roads. Significant projects include the near-completion of the Brahmaputra Bridge (1.24 km) linking Guwahati and North Guwahati and the ongoing construction of a 3.6 km bridge connecting Palashbari and Sualkuchi.
5. Social Welfare Measures
   • Professional Tax Exemption: Individuals earning up to ₹15,000 per month are proposed to be exempted from professional tax, benefiting over 1.43 lakh taxpayers.
   • Support for Tea Garden Workers: A one-time financial aid of ₹5,000 has been announced for approximately 6.8 lakh tea workers, totaling an allocation of ₹342 crore. Additionally, the tax holiday for green tea leaves will be extended for another two years to support the tea industry.
   • Empowerment of Women: The Orunodoi scheme has been allocated ₹5,000 crore to support over 37 lakh women. The Mukhya Mantri Mahila Udyamita Abhiyan, aimed at encouraging women entrepreneurs, has been allocated ₹3,038 crore and will commence on April 1, 2025, in Behali. The Mukhiya Mantri Nijut Moina scheme, promoting girls’ higher education and combating child marriage, has been allocated ₹391 crore.
   • Pension Reforms: The government will extend benefits of the Old Pension Scheme (OPS) under the New Pension Scheme (NPS) for eligible employees, impacting around 2.8 lakh government employees.
   • Ration Card Holder Relief: Starting October, every ration card holder in Assam will receive 1 kg each of lentils, sugar, and salt as part of state assistance, with ₹370 crore allocated for commissions to fair price shops.
   • Insurance for Contractual and PSU Employees: All contractual employees and public sector employees receiving salaries through commercial banks will be covered under a zero-cost accident and death insurance scheme.
6. Agricultural Support The budget proposes direct financial assistance for key crops:
   • ₹250 per quintal for paddy₹250 per quintal for maize₹500 per quintal for mustard
   These measures aim to bolster the agricultural sector and support farmers’ livelihoods.
7. Promotion of Education and Literature A one-time financial assistance of ₹25,000 will be provided to promising young writers contributing to creative science and education. Citizens are encouraged to gift books on special occasions to promote a reading culture, with government employees receiving ₹1,000 to purchase books.
8. Establishment of Dibrugarh as Second Capital An allocation of ₹200 crore has been made for constructing a new Assembly building and MLA hostel in Dibrugarh, officially designating it as the second capital of Assam.

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