Union Budget 2026-27 Allocates Nearly Rs 50,000 Crore in Tax Devolution to Assam for Development

Assam is set to receive nearly Rs 50,000 crore from tax devolution in the fiscal year 2026-27, according to a statement from the Union Ministry of Finance. This announcement follows Finance Minister Nirmala Sitharaman's presentation of the 2026-27 Union Budget in the Lok Sabha. The central transfers to Assam have seen a notable increase in recent Union Budgets.

Representative image

Since 2014, Assam has benefited from approximately Rs 3.12 lakh crore through tax devolution and Rs 2.49 lakh crore as grants-in-aid. This reflects the Centre's ongoing financial support. For FY 2026-27, Rs 49,725 crore is allocated for tax devolution, with Rs 29,548 crore earmarked as grants-in-aid for FY 2025-26.

Capital Investment Support

The Union Budget for 2026-27 has further strengthened the partnership between the Centre and Assam by boosting capital investment support. This includes sustained resource flow through tax devolution, grants-in-aid, and flagship welfare schemes. These initiatives are creating long-term assets, spurring economic growth, and enhancing citizens' quality of life across Assam.

A significant part of this support comes from the Special Assistance to States for Capital Expenditure (SASCI) scheme. Under SASCI, Assam receives 50-year interest-free loans from the Centre for infrastructure development. These loans are beyond the Finance Commission's recommendations. Between FY 2020-26 up to January 12, 2026, Assam received Rs 17,104 crore under SASCI.

Socio-Economic Benefits

Flagship central schemes are delivering extensive socio-economic benefits in Assam. As of January 2026, over 2.55 crore Jan Dhan accounts have bolstered financial inclusion in the state. Social security coverage has expanded with 58 lakh enrolments under PM Jeevan Jyoti Bima Yojana and 1.45 crore under PM Suraksha Bima Yojana.

Under PM Mudra Yojana, loans totalling Rs 74,884 crore have been disbursed to support entrepreneurship and small businesses. Welfare and infrastructure-focused schemes have also made significant progress in Assam.

Infrastructure and Welfare Initiatives

More than 40 lakh rural households have received toilets under Swachh Bharat Mission Gramin, while 57 lakh rural households now have tap water connections through Jal Jeevan Mission. Over 50 lakh LPG connections have been provided under PM Ujjwala Yojana.

Additionally, health security has been enhanced with the creation of 1.76 crore Ayushman cards. Food security efforts have reached over 2.4 crore beneficiaries under PM Garib Kalyan Anna Yojana, and around 19.3 lakh farmers have benefited from PM-KISAN.

These sustained investments through capital support, fiscal transfers, and flagship schemes underscore the Union Budget's commitment to Assam's inclusive and long-term development. This aligns the state's growth trajectory with the broader vision of Viksit Bharat.

With inputs from PTI