Assam's Fiscal Roadmap: Tax Reliefs Amid Budget Deficit

The Assam government unveiled a Rs 2.63 lakh crore budget for 2025-26, announcing tax exemptions and a green tea industry tax holiday amid an expected Rs 620.27 crore deficit. This budget, presented by Finance Minister Ajanta Neog, aims to support middle-class families and anticipate upcoming assembly elections in the state.

The Assam government on Monday introduced a Rs 2.63 lakh crore budget for fiscal year 2025-26, predicting a deficit of Rs 620.27 crore. A key highlight is the proposed exemption of professional tax for salaried individuals earning up to Rs 15,000 per month, a move targeting middle-class families.

Finance Minister Ajanta Neog, presenting her last complete budget ahead of next year's assembly polls, announced an extension of the tax holiday for green tea leaves for another two years starting January 2025. This initiative aims to provide relief to the struggling tea industry.

With the assembly elections anticipated in March-April, the budget is the final full blueprint from the second BJP-led state government. The financial plan projects aggregate receipts at Rs 2,62,913.92 crore and expenditures at Rs 2,60,959.24 crore, resulting in an estimated surplus of Rs 1,954.68 crore. However, a budget deficit of Rs 620.27 crore is expected, factoring in an existing deficit of Rs 2,574.95 crore, according to Neog.

(With inputs from agencies.)