Assam Receives Major Fiscal Boost with Rs 50,000 Crore Tax Devolution in Union Budget 2026-27
The Ministry of Finance has announced that Assam has been allocated nearly Rs 50,000 crore as tax devolution for the 2026-27 fiscal year in the Union Budget presented by Finance Minister Nirmala Sitharaman on Sunday. This significant allocation underscores the central government's continued fiscal support for the northeastern state's development agenda.
Sustained Growth in Central Transfers Since 2014
The ministry's official release highlighted that overall central transfers to Assam have experienced a sharp upward trajectory under successive budgets. Since 2014, the state has received approximately Rs 3.12 lakh crore through tax devolution mechanisms and an additional Rs 2.49 lakh crore in grants-in-aid, demonstrating sustained fiscal commitment from the Centre.
For the previous fiscal year 2025-26, grants-in-aid worth Rs 29,548 crore were specifically provided to support various state initiatives and development projects.
Strengthening Development Partnership Through Multiple Channels
The Union Budget has further reinforced the Centre's development partnership with Assam through multiple strategic approaches:
- Enhanced capital investment support for infrastructure development
- Ensuring steady resource flow through tax devolution mechanisms
- Continued allocation of grants for specific development projects
- Implementation of flagship welfare schemes across sectors
These comprehensive measures are strategically designed to create long-term durable assets, accelerate economic growth momentum, and substantially improve quality of life indicators across Assam's diverse regions.
Capital Expenditure Support Through SASCI Initiative
A particularly significant component of this support continues through the Scheme of Special Assistance to States for Capital Expenditure (SASCI). Under this initiative, Assam is receiving 50-year interest-free loans specifically earmarked for durable infrastructure development.
Between fiscal years 2020-21 and 2025-26, the state has received Rs 17,104 crore under the SASCI framework, enabling large-scale asset creation across transportation, urban development, and public infrastructure sectors.
Flagship Schemes Delivering Socio-Economic Benefits
Alongside substantial capital investments, numerous flagship central government schemes are delivering wide-ranging socio-economic benefits to Assam's population:
- Financial Inclusion: As of January 2026, Assam has established 2.55 crore Jan Dhan accounts, providing banking access to previously unbanked populations.
- Insurance Coverage: The state has achieved 58 lakh enrolments under PM Jeevan Jyoti Bima Yojana and 1.45 crore under PM Suraksha Bima Yojana.
- Pension Security: Millions of residents are covered under the Atal Pension Yojana for retirement security.
- Entrepreneurship Support: Under PM Mudra Yojana, loans worth Rs 74,884 crore have supported entrepreneurship development and small business growth.
Welfare and Infrastructure Initiatives Transforming Lives
Multiple welfare and infrastructure initiatives have shown remarkable progress across Assam:
- Sanitation: 40 lakh rural households now have toilets under Swachh Bharat Mission (Gramin)
- Water Access: 57 lakh households have functional tap water connections under Jal Jeevan Mission
- Clean Cooking: 50 lakh LPG connections have been released under PM Ujjwala Yojana
- Health Security: Health coverage has expanded with 1.76 crore Ayushman cards issued
- Food Security: Nutritional support reaches 2.4 crore beneficiaries under PM Garib Kalyan Anna Yojana
- Farmer Support: 19.3 lakh farmers have directly benefited under PM-KISAN income support scheme
The comprehensive fiscal support structure, combining tax devolution, grants, capital expenditure assistance, and welfare scheme implementation, represents a multi-dimensional approach to Assam's development that addresses both immediate needs and long-term growth objectives.
