Assam Budget 2026-27 unveils major investments in irrigation, healthcare, education, jobs and infrastructure across the state
Assam Finance Minister Jayanta Malla Baruah on Friday, July 10, presented the Assam Budget 2026-27, outlining the state government's development agenda with major proposals focused on irrigation, healthcare, education, industrial growth, agriculture, entrepreneurship and infrastructure. The budget, centred on the vision of "Viksit Assam", combines welfare measures with long-term investments aimed at boosting economic growth, expanding public services and generating employment across the state.
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One of the budget's biggest announcements is a large-scale irrigation expansion programme estimated at between ₹3,000 crore and ₹4,000 crore over the next five years. The government will assess lean-season water availability in major rivers, including the Barak, Subansiri, Manas, Beki, Puthimari, Jia Bharali, Dhansiri and Kopili, to develop lift irrigation projects supported by piped distribution networks. For 2026-27, ₹200 crore has been allocated to prepare a comprehensive irrigation master plan covering project pipelines, financing models and priority regions.
The agriculture sector also received significant attention. The government has allocated ₹100 crore to promote organic certification of export-oriented crops and strengthen export logistics, including the development of an air cargo facility in Guwahati. Support for Farmer Producer Organisations (FPOs) under the Mukhya Mantri Utkarsh Yojana has also been expanded. After extending financial assistance to 254 FPOs during the previous year, another 100 FPOs will be covered with an outlay of ₹15 crore.
The tea industry has also received major boost under the Assam Tea Industries Special Incentives Scheme. Matcha Tea has now been brought under the scheme, while the production subsidy for orthodox and specialty tea has been increased from ₹10 per kilogram to ₹15 per kilogram. The government has also introduced a fresh subsidy of ₹3 per kilogram for export-oriented premium Assam CTC tea. Presenting the budget, Baruah noted that orthodox tea production has nearly doubled over the past four years, reflecting the state's growing focus on value addition.
Healthcare emerged as another key priority in the budget. Citing improvements in maternal and child health indicators, the Finance Minister announced plans to strengthen every health sub-centre in Assam by deploying at least one MBBS doctor along with adequate nursing staff. The government also proposed strengthening tea garden hospitals and ensuring that every Assembly constituency has at least one 50-bed First Referral Unit.
To support the healthcare expansion, the government has proposed creating around 33,240 new posts, including more than 6,800 MBBS doctors, nearly 11,000 staff nurses, pharmacists, laboratory technicians and other healthcare personnel. The state also plans to establish four new medical colleges in Goalpara, Hailakandi, Hojai and Bajali, taking the total number of medical colleges in Assam to 28 and moving closer to the goal of establishing one medical college in every district.
Education featured prominently in the government's long-term development strategy. Baruah announced the vision of "One District, One University, One Medical College, One Engineering College" and proposed setting up two integrated academic complexes comprising universities, medical colleges, engineering colleges and Industrial Training Institutes (ITIs) under the public-private partnership model. He also announced that IIM Guwahati will commence its first MBA batch during the 2026-27 academic session.
To strengthen higher education infrastructure, the government announced phased grants of ₹100 crore each for seven newly established universities and ₹50 crore each for another seven universities. Financial assistance will also be provided to 27 colleges that have recently received autonomous status from the University Grants Commission.
Industrial development continues to remain central to the state's growth strategy. Referring to the Advantage Assam 2.0 investment summit, Baruah said the event attracted investment commitments exceeding ₹5.18 lakh crore, with projects worth more than ₹10 lakh crore already at various stages of implementation. These investments are expected to generate over 1.02 lakh direct and indirect employment opportunities.
The government also plans to establish industrial parks in every district while strengthening land banks and industrial infrastructure.
The budget also places renewed emphasis on land reforms through Mission Basundhara 4.0. Building on previous phases that granted land ownership rights to more than 3.56 lakh families, the next phase will focus on digital land surveys in char areas, strengthening land rights in the Barak Valley and among indigenous communities, and modernising land governance through Projects Jorip, MATI and ASOM. The government also intends to amend existing laws to ensure that land allotments are restricted to families residing in Assam for at least three generations.
Entrepreneurship remains another major focus of the budget. Under the Chief Minister's Atmanirbhar Asom Abhijan (CMAAA), nearly one lakh beneficiaries have already received financial assistance in two phases.
During the current financial year, another 50,000 young entrepreneurs will be selected under the scheme, for which ₹500 crore has been earmarked. Over the next five years, the government aims to support 10 lakh entrepreneurs through the initiative.
Women-led entrepreneurship has also received a boost. The government announced that members of Self-Help Groups (SHGs) will be enabled to access collateral-free bank loans through central credit guarantee schemes. Stamp duty on loan agreements executed by women SHG members for loans of up to ₹10 lakh will also be exempted.
The budget also includes several initiatives aimed at preserving Assam's cultural heritage. The government plans to organise a grand Bihu celebration in New Delhi, support feature films on Lachit Barphukan and freedom fighter Kushal Konwar, and pursue UNESCO recognition for additional cultural and heritage assets, including Majuli's Vaishnavite culture, Bihu and the Ahom capital at Rangpur-Sivasagar. Conservation work at Rang Ghar and Kareng Ghar will be expedited, while Madhupur Satra will be strengthened through the constitution of the Assam Satra Commission.
Tea garden welfare continues to receive special attention. The government announced that land rights will be provided to another 1.14 lakh tea garden families during the current financial year, with the long-term objective of granting legal ownership to all 3.5 lakh tea garden families over the next five years. Additionally, all Agricultural Income Tax collected from tea industries will now be exclusively earmarked for tea garden welfare and development.
Government employees also received benefits in the budget. The Apon Ghar housing scheme has been extended for another five years, with the maximum eligible loan in urban areas increased to ₹50 lakh. The Apon Bahan scheme has also been extended with enhanced interest subsidy for electric vehicles. The government further announced two weeks of paternity leave for government employees and extended paid maternity leave benefits to employees of government societies and public sector undertakings.
Tourism development remains a priority, with the government proposing a comprehensive Homestay Policy offering a 30 per cent capital subsidy and interest subvention to eligible homestays. The budget also proposes the establishment of five-star hotels at Umrangso, Haflong and Manas to encourage private investment in hospitality infrastructure.
To improve youth employability, the government has expanded the Chief Minister's Foreign Language Initiative for Global Human Talent (CM-FLIGHT) by including English, German and other foreign languages, with financial assistance of ₹1.5 lakh per candidate. Assam will also introduce an AVGC-XR Talent Development Policy covering animation, gaming, comics and extended reality industries. Spoken English training will also be introduced in nursing colleges to improve international employability.
A major regional development initiative announced in the budget is the creation of the Second State Capital Region at Dibrugarh, covering areas within a 20-kilometre radius of the city's capital complex. The government has allocated ₹500 crore over five years for infrastructure development in the region.
Among the other key announcements, the MLA Local Area Development Fund has been enhanced to ₹1.5 crore per legislator during 2026-27 and will increase to ₹2 crore from the following financial year. The government also proposed strengthening administrative infrastructure in the Barak Valley, establishing a satellite AIIMS centre at Sribhumi and setting up a modern zoo in Silchar.
The budget also announced the rollout of a unified 112 Emergency Response System integrating police, fire, health and disaster response services through a single emergency number. Another major healthcare proposal is the establishment of a ₹550 crore Proton Therapy Centre at Guwahati Medical College and Hospital, making it the first state government institution in India to offer the advanced cancer treatment.
Other major initiatives include a ₹500 crore Dairy Expansion Mission, plans to achieve self-sufficiency in fish, milk, eggs and meat production, Mission Senehjori to transform Assam into a global hub for Golden Muga Silk with an investment of around ₹400 crore, and the creation of a Cabinet Task Force to promote the state's agarwood sector.
Infrastructure proposals include a ₹2,500 crore underground power cable project for Guwahati, a feasibility study to integrate Metro Rail with the Guwahati Ring Road, a ₹1,164 crore Assam Semiconductor Ecosystem (A-SEMI) project in partnership with JICA, ₹100 crore for aerospace component manufacturing, expansion of AssamSAT as India's first state-owned Earth Observation Satellite System, AI-powered governance initiatives and a proposal to establish branded Assamese food outlets in every state capital across the country.
Overall, the Assam Budget 2026-27 presents an infrastructure-driven and investment-focused roadmap that combines welfare measures with long-term capital creation. With major proposals spanning irrigation, healthcare, education, industrialisation, digital governance, entrepreneurship and social welfare, the government has sought to position Assam as a stronger economic and investment destination while expanding public services and employment opportunities. The success of these initiatives, however, will ultimately depend on timely implementation, efficient execution and sustained fiscal discipline in the years ahead.