Assam Budget 2025: CM Himanta Biswa Sarma proposes tax sops, electricity subsidy, higher pension for widows

Assam Finance Minister Ajanta Neog presented the state budget for the financial year 2025-26 in the state assembly on March 10. The ₹2.63 lakh crore budget has projected a deficit of ₹620.27 crore.

Ahead of the 2026 assembly polls in the state, this is the last full-fledged budget of the Himanta Biswa Sarma-led Assam government.

Here are the key highlights from the budget:

TAX EXEMPTION 

The budget proposed to exempt professional tax for monthly income up to ₹15,000 for all working people in the state. "This will benefit more than 1.43 lakh taxpayers/families and boost their purchasing capacity," Neog said. "I also announce extension of tax holiday on green tea leaves under the Assam Taxation (on Specified Lands) Act, 1990, for another two years with effect from January 1, 2025," Neog added.

ORUNODOI SCHEME

The minister allocated ₹5,000 crore to the scheme, covering over 37 lakh women in Assam. Under this, pension to widows will be increased to ensure parity with Orunodoi. 

BOOST TO WOMEN ENTREPRENEURS

₹3,038 crore allocated to encourage women entrepreneurs. The Mukhya Mantri Mahila Udyamita Abhiyan will begin from April 1, 2025 in Behali. At least 30 lakh self-help group members of rural areas and two lakh urban areas will be covered. Additionally, an entrepreneurship fund of ₹10,000 will be granted as seed capital. 

ADDITIONAL AID TO FARMERS

The new budget has allocated additional financial aid to farmers over and above the minimum support price (MSP). The farmers will now get ₹2,550 per quintal of paddy, ₹2,475 per quintal of maize, and ₹6,450 per quintal of mustard. ₹10 lakh each will be given to around 500 better performing Farmer Producer Organizations (FPO) under Mukhya Mantri Utkarsh Yojana. A Credit Guarantee Fund Scheme with initial corpus of collateral-free loans of ₹15 crore has also been announced. 

RS 300 CRORE ELECTRICITY SUBSIDY

Starting May 1, a rebate of Rs1 per unit on consumption of electricity up to 120 units for domestic and Jeevan Dhara customers. 

ADDRESSING HUMAN-ANIMAL CONFLICT

The minister has allocated ₹20 crore to a unique initiative, Bon Mitra Abhiyan. Under this initiative, Gaja Mitra scheme will be implemented in five most human-elephant conflict-prone districts: Goalpara, Udalguri, Nagaon, Baksa, and Sonitpur. 

The focus will be on enriching elephant habitats, deploying AI-based camera traps for real-time alerts on elephant movement and advancing paddy procurement in frequent elephant foraging areas. Ex-gratia for loss of human life due to human wildlife conflict has been increased from ₹4 lakh to ₹5 lakh. Crop damage compensation due to wildlife has also been increased to ₹8,000 per bigha from ₹7,500.

ENHANCING STATE INFRASTRUCTURE  

Several infrastructure development projects have been allotted funds for the fiscal year 2025-2026. Karanataka Univeristy has been allotted ₹400 crore, a state of the art sports stadium will get ₹108 crore, and Nehru Stadium FIFA Centre has been given ₹675 crore. Apart from this, ₹200 crore have been allotted to a new Assembly building and MLA hostel in Dibrugarh.

AID TO WRITERS, FOCUS ON BOOKS

The CM has announced that ₹25,000 each will be given to 1,000 young writers with a focus on those contributing to creative, scientific, and academic writing. All official gifts presented at government functions will be books, and a one-time grant of ₹1,000 will be given to all government employees for book purchase. 

SUPPORT FOR TEA FARMERS

₹342 crore have been allocated to boost the economic profile of 6.8 lakh tea garden workers. A one-time financial assistance of ₹5,000 will be granted to them. 

MORE SUBSIDY ON FOOD

The ‘Anna Sewa Se Jan Sewa’ scheme has been allotted ₹370 crore, and will now cover over 60 lakh families in the state. Starting October this year, there will be a subsidy of ₹25 per kg on masur dal, ₹20 per kg on sugar, and ₹10 per kg on sugar. Additionally, one kg masur dal will be given to families with more that five members.  

The total expenditure from the consolidated fund in 2025-26 is projected at ₹1,55,985.14 crore. Taking into account the expenditure of ₹1,02,974.10 crore under the public account and ₹2,000 crore under the contingency fund, the aggregate expenditure for the year is estimated at 2,60,959.24 crore, the minister said.

(With inputs from agencies)