Assam Budget 2026-27: Tax break for tea farmers, social restrictions on polygamy, 2000 jobs | Best highlight

The Assam government on Friday introduced a ₹2,85,084 crore budget for the financial year 2026-27, which proposes to quadruple the tax exemption limit for small tea growers and reduce VAT on pipeline natural gas by nearly 10 percentage points.

Presenting his first budget, BJP leader and state finance minister Jayanta Malla Baruah also announced the continuation of all major programs introduced during the last five years, news agency PTI reported.

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Baruah said those practicing polygamy would not be entitled to any benefits and government employees found guilty of the practice would face dismissal.

The government proposed a “green cess” for polluting sectors and announced that two million people would be recruited over five years by filling existing vacancies and creating new posts across various departments.

Fiscal deficit of 3 percent

With a deficit ₹419.26 crore, Baruah presented a ₹2,85,084.45 crore of the budget and targeted a fiscal deficit of 3 percent of the state’s planned GDP.

“To provide relief to small tea growers, I propose to increase the agricultural income tax exemption threshold ₹2.5 million up to ₹10 crore in 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 will be devoted solely to the welfare of the tea garden communities, Baruah said.

He said the production of orthodox tea has increased from 4.39 million kg in 2021-22 to nearly 8 million kg in 2025-26, registering a strong growth of over 80 percent in four years.

“Assam has taken a significant step towards value addition in the tea sector by successfully producing premium Matcha tea. The first batch was sold through the Guwahati Tea Auction Center for nearly ₹3,000 per kg,” the minister said.

For further incentives to add value and boost exports of Assam tea, Matcha tea should be included in the eligible category of orthodox and specialty teas, he added.

“The subsidy for the production of orthodox and special teas will be strengthened from ₹10 per kg ₹15 per kg,” he added.

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“Furthermore, a new subsidy for ₹3 per kg will be introduced for export-oriented and premium Assam CTC tea, which is exported directly through recognized export channels, contributing to foreign exchange earnings,” Baruah said.

According to the budget document, the government is determined to expand clean and affordable energy across Assam as natural gas pipeline networks are being developed in key areas such as Guwahati, Dibrugarh, Jorhat, Tezpur, Darrang, Baksa, Kokrajhar, Nagaon and Barak Valley.

“To reduce household energy costs, promote cleaner fuels and support the expansion of town gas, I propose to reduce the VAT on piped natural gas from 14.5 per cent to 5 per cent,” he added.

Over 13,500 domestic gas pipeline connections and 46 CNG stations across the state have already been provided, the budget said.

During his budget speech, Baruah said welfare measures should not only reach those who deserve it, but also promote “inclusiveness, integrity and moral ethos” in society.

“In order to promote women’s empowerment and gender justice, no man practicing polygamy will be eligible for benefits under any government welfare scheme,” he added.

The budget proposed to amend the Assam Services (Disciplinary and Appeal) Rules, 1964 to dismiss from service any government employee practicing polygamy.

“To promote integrity and responsible citizenship, I propose that any person convicted of an offense under any criminal law shall not be eligible for benefits under the notified government welfare schemes,” Baruah said.

Since a proper budget was not available during the elections held earlier this year, the government will renew the welfare basket from August, he added.

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“The Upper House will appreciate the introduction of an unprecedented basket of social programs by our government covering different levels of beneficiaries. I propose to allocate more ₹6,000 crore under various grants for these social security schemes,” he said.

Green Cess on polluting assets

Talking about the polluting sectors, the finance minister said that guided by the principle that those who contribute to them should also contribute to their mitigation, the government will introduce a “green tax” on identified polluting activities and assets.

“Green Cess” will be levied on stone crushers, coking industry, brick kilns, transfer of used vehicles, commercial groundwater extraction and other environmentally sensitive industries and activities as may be notified by the government.

However, the budget did not mention how much tax will be collected as ‘green tax’.

“Proceeds from this process will be used for afforestation, pollution control, biodiversity conservation, climate adaptation, green energy, water resource management and other environmentally sustainable infrastructure,” he said.

Baruah said the government had given more than 1.64 million appointments in the last five years.

2 million new jobs

“Building on this success, we are now entering the next phase of job creation. Over the next five years, the government is targeting 2,000 job opportunities in the wider public sector ecosystem of the state,” he added.

These new recruitments will be held in Ministries, Universities, Medical Colleges, Statutory Bodies, Corporations, Sixth Plan Boards and State Government Substantial Shareholding Companies.

“A dedicated task force under the chairmanship of the Chief Secretary has already been set up to prepare a comprehensive plan. This will also help in timely promotion of the existing staff in the process of creating additional vacancies at the entry level,” he added.

Baruah said the government will review the creation of new posts in the police, educational institutes, health facilities, forest and other ministries.

“We are determined to create employment opportunities for our younger generation during the tenure of this government as per the promises made in the ‘Sankalp Patra’ (BJP manifesto),” he added.