+
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
Infrastructure Urban

Saluting Engineers on Engineer’s Day!

India’s infrastructure story is often told through kilometres of highways, soaring bridges, expanding metro networks and tunnels through some of the country’s toughest terrain. Less visible are the engineering decisions behind them. A railway through the Himalayas. A bridge across Mumbai Bay. A metro system built beneath a crowded capital. A 182-m-high structural landmark. A new generation of high-speed highways. Each demanded years of design, testing, coordination and problem-solving, often in conditions where there was little room for error. This Engineers’ Day, we lo..

Next Story
Infrastructure Urban

CJI Surya Kant Calls for Preventive Justice to Avoid Infrastructure Disputes

Kant has urged the infrastructure ecosystem to design contractual and institutional frameworks that identify and address concerns early through communication and dispute-avoidance mechanisms.Chief Justice of India Surya Kant has urged India’s infrastructure ecosystem to move from retrospective justice to preventive justice, as the country undertakes projects at an unprecedented scale. Speaking at global engineering body FIDIC’s Global Infrastructure Conference 2026 in New Delhi, Kant said the true measure of a justice system’s success lies in ensuring mechanisms around infrastructure pro..

Next Story
Infrastructure Urban

Madhya Pradesh Secures Rs 530 Billion in Investment Proposals

Rupee (Rs) 530 billion (bn) in investment proposals were received by Madhya Pradesh on the third day of Chief Minister Mohan Yadav's visit to the United Arab Emirates, with major interest in green energy, artificial intelligence, data centres and advanced manufacturing. The delegation held engagements in Dubai and Sharjah to promote projects and secure commitments from global investors. State officials said the proposals represent a significant pipeline for industrial expansion and technology infrastructure. Rana Holdings Limited proposed a portfolio including a 2,000 MW solar energy project a..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code