Assam Sets Ambitious Economic Target: Rs 10 Lakh-Crore Economy by 2028
In a significant announcement during the presentation of the vote on account, or interim budget, in the last session of the Assam Legislative Assembly before the upcoming polls, Finance Minister Ajanta Neog declared that the state is poised to achieve a monumental economic milestone. Assam is projected to become a Rs 10 lakh-crore economy by the year 2028, well ahead of the previously set deadline of 2030.
Robust Growth in Gross State Domestic Product
Neog highlighted the impressive trajectory of Assam's Gross State Domestic Product (GSDP) at current prices. The GSDP is expected to surge from over Rs 4.1 crore in the 2021–22 financial year to more than Rs 7.45 crore by 2025–26. Furthermore, the Economic Survey of Assam forecasts the GSDP to exceed Rs 8.71 crore for the 2026–27 period. This robust growth momentum positions the state to reach the Rs 10 lakh-crore mark ahead of schedule.
Substantial Increase in Capital Expenditure
The finance minister emphasized the state's commitment to asset creation through substantial capital investments. Since the 2021-22 financial year, Assam has undertaken cumulative capital expenditure exceeding Rs 1.04 crore. Notably, capital expenditure has skyrocketed by 795%, increasing from Rs 2,951 crore in 2015-16 to Rs 26,409 crore in 2024-25. Neog assured that borrowings have been prudently managed and largely directed towards productive asset creation, with outstanding debt rising by Rs 84,037 crore during this period.
Enhanced Budget Utilisation and Economic Performance
Addressing past inefficiencies, Neog pointed out a remarkable improvement in budget utilisation. The state has moved from a stagnant 58% budget utilisation rate in 2015-16 to a record-breaking 85% in 2024-25, effectively dismantling a culture of administrative delay and inertia.
Despite global economic challenges, Assam has emerged as India's growth engine. According to the Reserve Bank of India's latest assessment, Assam is the fastest-growing state in the country. At constant prices, the state's GSDP expanded by 45% between the 2019-20 and 2024-25 financial years, significantly outpacing the national average growth of 29%.
Strengthening Own Tax Revenue and Reducing Dependence
A key indicator of Assam's economic vitality is the growth in Own Tax Revenue, which has increased at an average annual rate of 13% over the past five years. Overall, Own Tax Revenue has risen by 75%, from Rs 17,134 crore in 2020-21 to Rs 30,052 crore in 2024-25.
Additionally, the Own Source Revenue now constitutes 37% of total revenue receipts, up from 30% in the 2015-16 fiscal year. This reduction in dependence on central transfers fosters a stronger, more self-sustaining internal economy for the state.
Continuation of Flagship Schemes
Presenting the Rs 62,294.78 crore vote on account for the 2026-27 fiscal year ahead of the assembly elections, Neog confirmed that major flagship initiatives will continue. Schemes such as Mukhya Mantrir Nijut Moina Asoni and Mukhya Mantrir Nijut Babu Asoni, which provide direct cash benefits to beneficiaries, are set to be sustained in the coming years, further supporting the state's economic and social development goals.
