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ASSAM STATE
BUDGET-2024-25
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State Budget 2024-25: Strategy for AmritKaal

State Budget Session: 5th February to 29th February, 2024 [Budget: To be presented on 12th February,
2024]

Issues raised by opposition:

 Selective Eviction Drives

 Unacceptability of CAA
 Attack on Bhupen Borah-AICC President-Bharat Jodo Nyaya Yatra-Jamugurihat
 Restoration of old pension system
 Aadhaar Biometrics Locked-NRC Updation: Around 27 lakh people in Assam [D-Voters: 96987
since 2016] [17 lakh eligible for getting Aadhaar Cards, while 10 lakhs have no names in final
NRC]
 Justice for unemployed, rape victims, women
 Demands for hike in honorarium of AWW, and AWH.
 ST status to six ethnic communities of Assam

Assam: GSDP-31.4% -Lower than the average annual GSDP [GSDP 2023-24: 5.70 Lakh Crore]

Assam State Debt: Stands at 1.15 lakh Crores [as of 31st March, 2023]

Multi-Dimensional Poverty Index-MDI- Fell from 32.65% to 19.35% [2015 and 2019-21], i.e. a decline of
13.3%

Urbanisation in Assam-Very Low [14% as per Census-2011]-National Average-31%

Total Fertility Rate-TFR –Assam for women-Children per Women (Age-15 to 49)-Below replacement rate
of 2.1

Fiscal Deficit and Public Debt: Within 3% and 30% of GSDP as per FRBM 2023-24

FRBM Act, 2003: Decrease fiscal deficit and eliminate revenue deficit

Initial FRBM Targets (to be met by 2008-09)

1. Revenue Deficit Target – revenue deficit should be completely eliminated by March 31, 2009. The
minimum annual reduction target was 0.5% of GDP.
2. Fiscal Deficit Target – fiscal deficit should be reduced to 3% of GDP by March 31, 2009. The
minimum annual reduction target was 0.3% of GDP.
3. Contingent Liabilities – The Central Government shall not give incremental guarantees aggregating
an amount exceeding 0.5 per cent of GDP in any financial year beginning 2004-05.
4. Additional Liabilities – Additional liabilities (including external debt at current exchange rate)
should be reduced to 9% of the GDP by 2004-05. The minimum annual reduction target in each
subsequent year to be 1% of GDP.
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5. RBI purchase of government bonds – to cease from 1 April 2006. This indicates the government not
to borrow directly from the RBI.

Implementing the act, the government had managed to cut the fiscal deficit to 2.7% of GDP and revenue
deficit to 1.1% of GDP in 2007–08. However, the targets were not met.

The global financial crisis (2007-08) led the government to infuse resources in the economy as the fiscal
stimulus in 2008. Therefore, fiscal targets had to be postponed temporarily in view of the global crisis.

Amendments in the FRBM Act

In 2012 and 2015, notable amendments were made, resulting in relaxation of target realisation year.

A new concept called Effective Revenue Deficit (E.R.D) was also introduced.

The requirement of ‘Medium Term Expenditure Framework Statement’ was also added via amendment
in FRBMA.

FRBM Targets after Amendment to FRBM Act in 2012 (to be achieved by 2015)

1. Revenue Deficit Target – revenue deficit should be completely eliminated by March 31, 2015. The
minimum annual reduction target was 0.5% of GDP.
2. Fiscal Deficit Target – fiscal deficit should be reduced to 3% of GDP by March 31, 2015. The
minimum annual reduction target was 0.3% of GDP.

FRBM Targets after Amendment to FRBM Act in 2015 (to be achieved by 2018)

1. Revenue Deficit Target – revenue deficit should be completely eliminated by March 31, 2018. The
minimum annual reduction target was 0.5% of GDP.
2. Fiscal Deficit Target – fiscal deficit should be reduced to 3% of GDP by March 31, 2018. The
minimum annual reduction target was 0.3% of GDP.

FRBM Review Committee headed by NK Singh: Recommendations

The government believed the targets were too rigid.

In May 2016, the government set up a committee under NK Singh to review the FRBM Act. The
committee recommended that the government should target a fiscal deficit of 3 per cent of the GDP in
years up to March 31, 2020, cut it to 2.8 per cent in 2020-21 and to 2.5 per cent by 2023.

The Committee suggested using debt as the primary target for fiscal policy. This ratio was 70% in 2017.

These are the targets set by NK Singh:

1. Debt to GDP ratio: The review committee advocated for a Debt to GDP ratio of 60% to be targeted
with a 40% limit for the centre and 20% limit for the states.
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2. Revenue Deficit Target – revenue deficit should be reduced to 0.8% of GDP by March 31, 2023. The
minimum annual reduction target was 0.5% of GDP.
3. Fiscal Deficit Target – fiscal deficit should be reduced to 2.5% of GDP by March 31, 2023. The
minimum annual reduction target was 0.3% of GDP.

Latest FRBM Targets

The latest provisions of the FRBM act requires the government to limit the fiscal deficit to 3% of the GDP
by March 31, 2021, and the debt of the central government to 40% of the GDP by 2024-25, among
others.

The Act provides room for deviation from the annual fiscal deficit target under certain conditions.

Escape Clause in the FRBM Act

Escape clause refers to the situation under which the central government can flexibly follow fiscal
deficit target during special circumstances. This terminology was innovated by the NK Singh
Committee on FRBM.

In Budget 2017, Finance Minister Arun Jaitley deferred the fiscal deficit target of 3% of the GDP and
chose a target of 3.2%, citing the NK Singh committee report.

However, the Comptroller and Auditor General of India (CAG) pulled up the government for deferring
the targets which it said should have been done through amending the Act.

In 2018, the FRBM Act was further amended. Specific details were updated in sub-section (2) of Section
4. The clause allows the govt to relax the fiscal deficit target for up to 50 basis points or 0.5 per cent.
Under FRBM, if the escape clause is triggered to allow for a breach of fiscal deficit target, the RBI is then
allowed to participate directly in the primary auction of government bonds, thus formalizing deficit
financing.

The Escape Clauses can be invoked:

 By the Government after formal consultations and advice of the Fiscal Council.
 With a clear commitment to return to the original fiscal target in the coming fiscal year.

In 2020, Finance Minister, Nirmala Sitharaman used the escape clause provided under the FRBM Act to
allow the relaxation of the target. Finance Minister revised the fiscal deficit for FY20 to 3.8 per cent and
pegged the target for FY21 to 3.5 per cent.

Note: The Act exempts the government from following the FRBM guidelines in case of war or calamity.

Medium Term Fiscal Plan (2024-29)

Four Mandates as per FRBM 2003 to be included in the mid-term fiscal policy plan-

1. Revenue deficit as a percentage of GDP

2. Fiscal deficit as a percentage of GDP.
3. Tax revenue as a percentage of GDP.
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4. Total outstanding liabilities as a percentage of GDP

Debt-to-GSDP Ratio: Ceiling-at 32% as per AFRBM-2005, Assam is at 23.47% [2022-23].

KEY PRIORITIES: ASSAM BUDGET 2024-25

Focus on Self-Reliant Assam:

1. Mahila Sabalikaran
2. Cultural Renaissance
3. Promoting Investment
4. Fostering a Greener Economy
5. Big Push For Infrastructure-Education, Tourism, Connectivity and Health
6. Sustained Growth and creation of jobs

Financial Data:

Growth Rate: 2021-22: National Average-18.4%, Assam-21.1% and 2022-23: National Average-16.1%,
Assam-19.9%

Per Capita Income: 2023-24: 1.35 Lakh, 2022-23: 1.20 Lakh

MDP: Multi Dimensional Poverty- Based on National MDPI-NITI Aayog 2023- 2013-14: 36.97% and
2022-23: 14.47%

GSDP:

GSDP [Nominal GSDP at Current Prices-Projected Estimate-2024-25]: 6.43 lakh crores, 2015-16: 2.54
lakh crores

GSDP [Nominal GSDP at Current Prices-Projected Advanced Estimate-FY-2023-24]: 5.70 lakh crores

GSDP [Real GSDP at Constant Prices-Projected Estimate-FY-2023-24]: 3.19 lakh crores

Aggregate Receipts: 2.90 lakh crores, Aggregate Expenditure: 2.88 lakh crores

Estimated Surplus: 1594.94 crores

Opening Deficit: 2369.41 crores

Budget Deficit: Rs.774.47 crores [@End of FY-2024-25]

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Comparison-Expenditure

 Overall Expenditure: 2021-22: 1.06 lakh crores to 2022-23: 1.27 lakh crores [Rise in Growth]

 Capital Expenditure [Mostly from-Externally Aided Projects-EAP and RIDF]: 2021-22: 20230
crores to 2022-23: 16338 crores [Decline in Growth]

Comparison-Receipts

 Overall Grants from Centre: 2021-22: 58476 crores to 2022-23: 59479 crores [Rise in central
grants]
 Revenue Receipts: 2021-22: 81589 crores to 2022-23: 89742 crores [Rise in revenue receipts]

Receipts and Expenditures:

 Overall Receipts [Expected: 2024-25]: 143606 crores [Revenue Receipts-111944 crores and
Capital Receipts-31662 crores]

[Share of central taxes-40, 000 crores-highest > state tax revenue-34149 crores> Public Debt-
29441> Centrally Sponsored Schemes-23197 crores > Non-Tax Revenue-8871 crores>Finance
Commission Grants-4806 crores>Recoveries of loans and advances-2221 crores> other transfers,
grants to states with legislatures-921 crores

 Overall Expenditure to be incurred [Expected: 2024-25]: 143891 crores [Revenue Expenditures-

110092 crores and Capital Expenditures-33799 crores]

[Social Services-55088 crores> General Services-49555 crores > Economic Services: 31153 crores
> Public Debt-7192 crores > Grants in aids and contributions-891 crores > Loans and Advances-
11 crores]

Expenditure: 143891 crores: Salaried-36399 crores and Non-Salaried-107492 crores

Voted-124515 crores and Charged-19376 crores
General Area-135519 crores and Sixth Schedule Area-8372 crores

Revenue:

Tax and Non-Tax Revenue:

 Tax Revenue- 74148 crores [29407 crores-GST>26181 crores-Tax on income and

expenditures>17106 crores-Tax on commodities and services> 1454-Taxes on property and
capital transactions]
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 Non-Tax Revenue- 8871 crores [7239 crores-other non-tax revenue (economic services)> 1111
crores-Interest, receipts, dividends and profits> 438 crores-other non-tax revenue (general
services)> 83 crores-other non-tax revenue (social services)

Note: Increase in GST + Non-GST Collection [Till 31st Jan, 2024]: Rs. 18,474 Crores

Major Revenue Earning Departments:

Commissioner of taxes-26415 crores [Highest]>Geology and mining-5907 crores>Excise-4101

crores>Transport-2210 crores>Land Revenue and Registration-1434 crores>Forest-1250 crores

SDG Goal Wise Expenditure: 2022-23

SDG -3 Good Health and Well Being>Goal-9 Innovation, Industry and Infrastructure>Goal-1 No
Poverty>Goal-2 Zero Hunger> Goal-4 Quality Education

Scheme Wise Expenditure: 2023-24

Establishment Expenditure>Centrally Sponsored Schemes>SOPD-State Owned Priority Development
Funds>Externally Aided Projects>Rural Infrastructure Development Fund (RIDF)

Sector Wise Expenditure: 2023-24

Others>Education, Sports, Art and Culture>Social Welfare and Nutrition>Transport>Water Supply,

Sanitation, Housing and Urban Development

Top 5 Department’s Highest Expenditure: 2024-25

Finance>School Education>Administrative Reforms and Training & PPG>Public Works (Roads)>P&RD

Theme Based Budgeting:

Gender Budget: 2023-24: 19387 Crores, 2024-25: 16937 Crores [Reduction]

Child Budget: 2023-24: 18566 Crores, 2024-25: 16834 Crores [Reduction]

Divyang Budget: 2023-24: 2548 Crores, 2024-25: 1968 Crores [Reduction]

Green Budget: SDG- 7, 11, 13- Green Budget share is 10.02% of total budget of 18 key departments
amounting to Rs. 4636 Crore in FY 2024-25.
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ASTADASH MUKUTAR UNNOYONEE MAALA [2024-25]:

The 18 Flagship Schemes
1. Mukhya Mantri Nijut Moina (MMNM)-240 Crores
Note: For girl students studying in government institutes (only) and un-married.

2. Mukhya Mantri Mahila Udyamita Abhiyaan

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3. Orunodoi 2.0-Expanding and More Inclusive-3800 Crores

4. AMFIRS, 2021- Category-III-550 Crores

5. CM’s Atma Nirbhar Asom Abhijan-1010 Crores

Note: One ITI will also be set up in every block by 2026.

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6. One Lakh Plus Jobs

7. Projects for Amrit Kaal

8. Creating Growth Corridors-Asom Mala 2.0 : 3500 Crores

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9. Mukhya Mantri Awaas Yojana (Gramin)-600 Crores

10. Innovative Integration of Wetlands with River Brahmaputra

-Flood Free Assam: 200 Crore Allocation

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11. Green Growth for Greener Assam

Note:
 Renewable Captive Power Plants received 3 years of exemption from electricity duty till FY
2025-26
 Introduction of new school curriculum-related to climate change
 Develop 10 model climate resilient villages

12. Welfare of Tea Tribe Community

Note: Exemption from Income Tax granted for 3 years in tea industries

13. Quest for Cultural Identity

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Note: Additional Rs.5000 will be provided to each Bhaona Committee which performs-Ram Bijoy Ankiya
Naat

14. Punya Tirtha Yojana-Ayodhya Pilgrimage

Note: Punya Dham Scheme-On-going scheme for pilgrimage to Puri, Vrindavan and Varanasi, etc.

15. Future for Children

16. Khel Maharan and Youth Clubs in 126 LACs

17. Global Investors Summit in November 2024

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18. Mukhya Mantri Sangrahalaya

Budget 2023-24: Presented: 16th March, 2023

(1). Mukhya Mantri Sva-Niyojan Mission
(2) One Lakh Jobs
(3) Assam Microfinance Incentive and Relief Scheme (AMFIRS) : Rs.500Crore
(4) Daridrata Nivaran: Rs. 4760 Crore-4 components- Orunodoi, MukhyaMantri Asom Yojana,
One Nation One Ration Card (ONORC), and MukhyaMantri Awas Yojana
(5) Pragyan Bharati: Rs. 3700 Crore
(6) Assam Urban Health Mission (AUHM)
(7) 200 years of Assam Tea: Rs.600 Crore
(8) Quest for Cultural Identity
(9). Mission for Prevention of Child Marriage: Rs.200 Crore
(10).Amar Gaon, Amar Gourav: Rs. 13 Crore
(11).Khel Maharan and Sanskritik Mahasangram: Rs. 60 Crore
(12).Reviving the movement around women empowerment (ASRLMS-3.27Lakh Women
SHGs)
(13).Creating Growth Corridors: Rs. 1000 Crore
(14).Right to Public Services Commission
(15).Standing with our employees- Apun Ghor, Apun Bahan: Rs. 120 Crore
(16).New Infrastructure Push: Rs. 15102 Crore
(17).Support to MSME Sector
(18).Mission Basundhara
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Major Announcements:
 10% Reservation for Eligible Agniveers [Local Candidates] in Assam Police
 Self sufficiency in egg, milk and fish production- Rs. 25 crores as milk subsidy to dairy farmers
 Promotion of small tea growers
 Start-Up Mission
 Setting up of handloom training centres at Padmashree Hemaprova Chutia’s residence
 PM Vishwakarma Yojana : Assam –Received 6th highest applications in India
 Farm Mechanization
 Rooftop Solarization
 Climate Action
 Amrit-Guwahati Integrated Global City (Amrit-GiG City): 1000 Acres Land
 Increase in Ex-Gratia amount from Rs.5 lakh to 7.5 lakh in case of unfortunate death of
employees working in ASRLM, SSA and NHM.
 Ayushman Asom : A comprehensive health care initiative
 Comprehensive School Health Programme under CM’s Ayushman Asom
 Village and Community Outreach Programme for MBBS Students in Assam under CM’s
Ayushman Asom
 Championing Digital Transformation and AI-Establishment of Centre of Excellence in AI
 Gyan-Dhara- Integrating Virtual Reality Technology with for experiential learning
 Third Assam Bhawan in New Delhi
 Standing with our employees- Apun Ghar, Apun Bahan
 Supporting the employees of different societies [Ex-gratia]
 Jeevika Sakhi Express [Introduced: 21st August, 2021]: Distribution of scooters to Krishi Sakhi,
Bima Sakhi, Pashu Sakhi and Jeevika Sakhi who work as a community cadres by arranging new
SHGs within their respective areas as part of the community cadre initiative.
 Monthly remuneration to honorary gaon pradhans in the forest areas-along Assam-Nagaland
and Assam-Arunachal Pradesh Border.
 Grant of Rs.10 lakh to full fledged Assamese Cinemas.
 Artists and Technicians of Assamese Cinemas to be brought under “Atal Pension Yojana” and the
government will be paying 50% of their contributions for 5 years.
 Investment of Rs. 50 lakh as share capital/grant/soft loan for new cinema hall.
 Separate Legend Nights for paying tribute to Dr. Bhupen Hazarika, Jayanta Hazarika and Bishnu
Rabha.
 Swaheed Kanaklata Baruah’s home to be converted into a museum.
 New Start Up Incubation Hubs- Assam Engineering College (Guwahati) and Jorhat Engineering
College
 50 new BoP [Border Outposts] over the next 3 years in strategic locations to enhance border
security
 Assam Knowledge Network-Educational Institutions and Government Offices to be integrated
with minimum 100 Mbps internet connectivity
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 IVF Centres in Dibrugarh, and Silchar Medical Colleges, B Pharm Courses in Silchar and Guwahati
Medical Colleges and Graduate courses in Allied Health Sciences in Guwahati.
 Houses for Police Personnel : 10,000 new 2 BHK houses-next 5 years-150 Crores allocated
 Houses for Safai Karamcharis: Phase-1: 250 new houses in FY-2024-25-37.50 Crores allocated
 126 Accredited Driver Training Centre (ADTC) in every LAC-Full time training courses will be
provided and those who pass out shall be exempted from the mandatory test of compliance to
get a driving license.

“Thank You Every One for being a part of my dream initiative-Mission APSC”