With no new tax proposed, Assam Finance Minister Ajanta Neog on February 12 presented the State’s ₹774.47 cr deficit budget for 2024-25 financial year while laying renewed focus on green energy, women empowerment, entrepreneurship and infrastructure development.
“This year our focus is to have a realistic budget – the budget that fulfils real aspirations of citizens of this State on one hand and avoids inflated figures on the other. Our efforts would be to have full utilization of budgetary allocation by all the departments. Another feature of a realistic budget would be laying more emphasis on enhancing its own source,” said Neog in her fourth Budget speech of the present Government.
The Budget Estimates of 2024-25 show a receipt of ₹1,43,605.56 cr under the Consolidated Fund of the State. Out of this, ₹1,11,943.84 cr is in the Revenue Account and the remaining ₹31,661.73 cr is under the Capital Account. After adding the receipt of ₹1,44,550.08 cr under Public Account and ₹2,000 cr under Contingency Fund, the aggregate receipts amount to ₹2,90,155.65 cr. The aggregate expenditure for the year is estimated at ₹2,88,560.71 cr. Thus, estimated transactions during the year will result in an estimated surplus of ₹1,594.94 cr. This, together with the opening deficit of ₹2,369.41 cr will lead to a Budget deficit of ₹774.47 crore at the end of the financial year 2024-25.
The State Finance Minister during presentation of her Budget for the FY 2024-25 told MLAs present on the occasion that Assam has made strides in revenue generation. “With profound satisfaction, I wish to inform the House that there has been a growth of 30.7% in State’s Own Revenue in 2022-23 compared to 2021-22. This kind of phenomenal growth is unprecedented and has been possible due to slew of reforms across all revenue earning departments. At every stage of this journey, the guidance and leadership provided by the Chief Minister has been exemplary. This growth in revenue is reflected in all segments like Taxation, Excise, Forest, Land Revenue, Transport, etc.,” said Neog.
Neog highlighted the mop up of ₹19,715 cr in FY 2022-23 under the Finance (Taxation) Department, exceeding the previous year receipt by 21%. “GST and non-GST collection till 31st January 2024 is ₹18,474 cr against ₹16,240 cr collection for the corresponding period during financial year 2022-23, registering a growth of 14%. Next year, we will strive for a growth of 16%,” said Neog.
She also hailed the Excise Department’s revenue growth of 22% at ₹2,459 cr till 31st January, 2024, against ₹2,008 cr for the corresponding period during 2022-23.
She said that as per projected estimate, the State GDP at current prices for the year 2024-25 is expected to touch Rs. 6.43 lakh cr. This is more than 150% increase over the GSDP of ₹2.54 lakh cr for the year 2016-17.
As per the advance estimates, the nominal GSDP for Assam at current prices for 2023-24 (AE) is likely to reach ₹5.70 lakh cr, as against ₹4.93 lakh cr in 2022-23 (QE) reflecting a growth of 15.6% over the preceding year. “The real GSDP for Assam at constant prices for the year 2023-24 is likely to attain a level of ₹3.19 lakh cr as against ₹3.01 lakh cr in the year 2022-23(QE) reflecting a growth of 5.9% over the preceding year,” said Neog.
The State Finance Minister stated that the contribution of the State’s economy to the national economy has also been increasing from 1.65% of GDP in financial year 2016-17 to 1.81% in the financial year 2022-23 (QE).
Neog said that the State is fast catching up in its per capita income and it has almost more than doubled in the last seven years to
₹1,20,336, compared to ₹66,330 in 2016-17.
The Finance Minister, in her Budget presentation for FY 2024-25, was vocal about green-cum-clean energy. The Minister proposed to undertake an energy audit of Government establishments to reduce the carbon footprint of these buildings.
Revealing the State Government’s plans for mandatory installation of rooftop solar in all new buildings (private and public), Neog said, “Our Government shall come up with a new legislation to this effect during the current year.”
She said that a Global Investors’ Summit will be organised in November 2024, which will witness participation of major global and Indian industrial houses.
Neog said that looking forward to the financial year 2024-25, the Skill, Employment and Entrepreneurship Department has envisaged at least one ITI in every block of the State by 2026. She added that the Assam Skill University (ASU), the first of its kind in the eastern part of the country, shall be made operational by 2025, enrolling approximately 1,500 students.
