+
Assam Budget 2026 Proposes Cut To VAT On Piped Natural Gas
OIL & GAS

Assam Budget 2026 Proposes Cut To VAT On Piped Natural Gas

The Assam government presented a Rs 2,850.84 billion (bn) budget for the 2026-27 financial year and proposed reducing Value-Added Tax on piped natural gas to five per cent from 14.5 per cent to promote cleaner fuel. The finance minister said he would continue major schemes rolled out during the last five years. The announcement formed part of the maiden budget presented in Dispur.

The budget estimates indicate receipts of Rs 1,518.43 bn under the consolidated fund and receipts of Rs 1,344.66 bn under the public account, together with Rs 20 bn under the contingency fund, bringing aggregate receipts to Rs 2,883.09 bn. For the purpose of clarity, billion (bn) is used after the first mention. The allocations reflect the state administration's approach to balancing revenue mobilisation and expenditure.

Total expenditure from the consolidated fund is estimated at Rs 1,567.15 bn with a further Rs 1,263.70 bn under the public account and Rs 20 bn under contingency, yielding aggregate expenditure of Rs 2,850.84 bn. Taking into account an opening deficit of Rs 36.44 bn, the budget will result in a closing deficit of Rs 4.19 bn for the year. The budget targets a fiscal deficit of three per cent of the state's projected GSDP.

To provide relief to small tea growers, the finance minister proposed raising the agricultural income tax exemption threshold from Rs 0.25 million (mn) to Rs one million (mn). Million (mn) is defined on first mention. The VAT cut on piped natural gas, the minister said, aims to reduce household energy costs, promote cleaner fuel and support city gas supply expansion.

The chief minister said the state's budget size had increased three-fold to Rs 2,007.82 bn in 2025-26 and that fund utilisation stood at 85 per cent. He noted that per capita income has risen from Rs 60,817 in 2015-16 to Rs 185,429 in 2025-26 and that the state's own tax revenue reached Rs 392.94 bn. Officials will now proceed with implementation and monitoring of the announced measures.

The Assam government presented a Rs 2,850.84 billion (bn) budget for the 2026-27 financial year and proposed reducing Value-Added Tax on piped natural gas to five per cent from 14.5 per cent to promote cleaner fuel. The finance minister said he would continue major schemes rolled out during the last five years. The announcement formed part of the maiden budget presented in Dispur. The budget estimates indicate receipts of Rs 1,518.43 bn under the consolidated fund and receipts of Rs 1,344.66 bn under the public account, together with Rs 20 bn under the contingency fund, bringing aggregate receipts to Rs 2,883.09 bn. For the purpose of clarity, billion (bn) is used after the first mention. The allocations reflect the state administration's approach to balancing revenue mobilisation and expenditure. Total expenditure from the consolidated fund is estimated at Rs 1,567.15 bn with a further Rs 1,263.70 bn under the public account and Rs 20 bn under contingency, yielding aggregate expenditure of Rs 2,850.84 bn. Taking into account an opening deficit of Rs 36.44 bn, the budget will result in a closing deficit of Rs 4.19 bn for the year. The budget targets a fiscal deficit of three per cent of the state's projected GSDP. To provide relief to small tea growers, the finance minister proposed raising the agricultural income tax exemption threshold from Rs 0.25 million (mn) to Rs one million (mn). Million (mn) is defined on first mention. The VAT cut on piped natural gas, the minister said, aims to reduce household energy costs, promote cleaner fuel and support city gas supply expansion. The chief minister said the state's budget size had increased three-fold to Rs 2,007.82 bn in 2025-26 and that fund utilisation stood at 85 per cent. He noted that per capita income has risen from Rs 60,817 in 2015-16 to Rs 185,429 in 2025-26 and that the state's own tax revenue reached Rs 392.94 bn. Officials will now proceed with implementation and monitoring of the announced measures.

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code