Assam Budget 2026-27: Tax relief for tea growers, welfare curbs for polygamy, 2 lakh jobs | Top highlights

Assam Budget 2026-27: Tax Adjustments, Polygamy Restrictions, and Job Creation

Fiscal Targets and Budget Allocation

Theindiapostdaily.com – The Assam government unveiled a ₹2,85,084 crore budget for the 2026-27 fiscal year, targeting a 3% fiscal deficit relative to the state’s projected gross state domestic product (GSDP). Finance Minister Jayanta Malla Baruah emphasized the need to balance economic growth with social welfare, ensuring that resources are directed toward both development and accountability.

Tea Sector Reforms

Baruah highlighted measures to support the tea industry, including a significant tax adjustment for small-scale growers. The exemption threshold for agricultural income tax will be raised from ₹2.5 lakh to ₹10 lakh annually, providing substantial relief. Additionally, a new subsidy of ₹3 per kg is proposed for premium-quality Assam CTC tea exported through recognized channels, aiming to boost foreign exchange earnings.

“Orthodox tea production has surged from 4.39 crore kg in 2021-22 to nearly 8 crore kg in 2025-26, marking an impressive 80% growth over four years,” Baruah noted.

The minister also announced the inclusion of Matcha tea in the category of orthodox and specialty teas, with the first batch sold at ₹3,000 per kg via the Guwahati Tea Auction Centre. This move underscores Assam’s commitment to value addition in the tea sector.

Energy Expansion and Cost Reduction

To address household energy costs and promote cleaner fuels, the budget includes a 10% reduction in VAT on piped natural gas, cutting it from 14.5% to 5%. This initiative supports the expansion of city gas networks in regions like Guwahati, Dibrugarh, and the Barak Valley. Over 13,500 domestic gas connections and 46 CNG stations have already been established, with further infrastructure development planned.

Social Welfare and Polygamy Measures

Welfare reforms aim to ensure fairness and inclusivity. Baruah stated that individuals practicing polygamy will lose eligibility for government benefits, including staff who engage in the practice. “This is a step to enforce integrity and moral responsibility,” he explained.

“Any male involved in polygamy will no longer qualify for welfare schemes, reinforcing gender justice and societal accountability,” Baruah added.

The budget also proposes amending the Assam Services (Discipline and Appeal) Rules, 1964, to dismiss government employees found guilty of polygamy. Furthermore, a new rule mandates that those convicted under criminal laws be barred from accessing welfare programs.

Job Creation and Skill Development

Baruah announced plans to create 2 lakh new jobs over five years by filling existing vacancies and establishing new positions across departments. This initiative aligns with the government’s focus on employment generation and skill enhancement. The minister also reiterated the continuation of major welfare schemes introduced in the previous five years, citing their effectiveness in reaching beneficiaries.

Green Cess on Polluting Sectors

To combat environmental degradation, the government will introduce a “Green Cess” on polluting activities such as stone crushers, coke-based industries, and brick kilns. This levy, guided by the principle that contributors to pollution should also bear its mitigation costs, is part of Assam’s broader strategy to expand clean energy access and reduce ecological impact.