Assam Budget 2026 Proposes Cut To VAT On Piped Natural Gas

16 Jul 2026 CW Team

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.

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Assam Budget 2026 Proposes Cut To VAT On Piped Natural Gas

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