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

Published 10 July 2026 · india

The Assam government on Friday presented a ₹2,85,084 crore budget for the 2026-27 financial year, proposing to raise tax exemption limit for small tea growers

The Assam government on Friday presented a ₹2,85,084 crore budget for the 2026-27 financial year, proposing to raise tax exemption limit for small tea growers by four times and cut VAT on piped natural gas by almost 10 percentage points. Presenting his maiden Budget, BJP leader and state Finance Minister Jayanta Malla Baruah also announced the continuance of all the major schemes rolled out during the last five years, news agency PTI reported. Baruah said those practising polygamy will not be eligible for any benefits and government staff found guilty of this practice will face dismissal. Proposing a 'green cess' on polluting sectors, the government announced that two lakh people will be recruited over five years by filling existing vacancies and creating new posts across various departments. A fiscal deficit of 3 per cent With a deficit of ₹419.26 crore, Baruah tabled a ₹2,85,084.45 crore budget and aimed a fiscal deficit of 3 per cent of the state's projected GSDP. "To provide relief to small tea growers, I propose to enhance the agricultural income tax exemption threshold from ₹2.5 lakh to ₹10 lakh of annual agricultural income," he added. At the same time, the tax will be restored for larger assessees with effect from April 1, 2026, and the additional revenue generated shall be dedicated exclusively to the welfare of tea garden communities, Baruah said. He said orthodox tea production has increased from 4.39 crore kg in 2021-22 to nearly 8 crore kg in 2025-26, recording a strong growth of over 80 per cent in four years.

"Assam has taken a significant step towards value addition in the tea sector with the successful production of premium Matcha tea. The first lot was sold through the Guwahati Tea Auction Centre at nearly ₹3,000 per kg," the minister said. To further incentivise value addition and boost Assam Tea exports, Matcha tea shall be included within the eligible category of orthodox and specialty tea, he added. "The production subsidy for orthodox and specialty tea will be enhanced from ₹10 per kg to ₹15 per kg," he added. "Further, a new subsidy of ₹3 per kg will be introduced for export-oriented and premium-quality Assam CTC tea that is exported directly through recognised export channels, contributing to the foreign exchange earnings," Baruah said. According to the budget document, the government is committed to expand clean and affordable energy across Assam, as piped natural gas networks are being developed in key areas like Guwahati, Dibrugarh, Jorhat, Tezpur, Darrang, Baksa, Kokrajhar, Nagaon and the Barak Valley. "To reduce household energy costs, promote cleaner fuel and support city gas expansion, I propose to reduce VAT on piped natural gas from 14.5 per cent to 5 per cent," it added. Over 13,500 domestic piped gas connections have already been provided, along with 46 CNG stations across the state, the Budget mentioned. During his budget speech, Baruah said welfare measures should not only reach the deserving but also enforce "inclusivity, integrity and moral ethos" in society.