The Assam government has presented yet another budget touting unprecedented development, fiscal discipline, and a slew of welfare measures. However, a critical analysis of the budgets from 2021-22 to 2025-26 reveals a pattern of redundant announcements, ballooning expenditure, and a failure to deliver on key economic promises.
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Assam’s Gross State Domestic Product (GSDP) has grown from Rs. 3.77 lakh crore in 2021-22 to an estimated Rs. 6.43 lakh crore in 2024-25. The 2025-26 budget projects further growth, but questions remain about how this translates into real benefits for citizens. Per capita income has doubled since 2016-17, yet Assam still lags behind national averages, with high youth unemployment and stagnant wages for many working-class citizens.
The fiscal deficit has been another area of concern. While the government projected a disciplined deficit of 3.99% of GSDP in 2021-22, it ballooned to 8.52% in 2022-23 before being reined in to 3.19% in 2023-24. The 2025-26 budget aims to maintain deficit levels, but the state’s borrowings continue to rise. The government has touted its increased capital expenditure, but much of this spending is financed by borrowings, raising concerns about long-term sustainability.
A closer look at flagship programmes reveals a trend of rebranded or re-announced schemes with little real progress:
• Orunodoi Scheme: Initially launched in 2020, the government has repeatedly announced expansions without addressing the inefficiencies in fund disbursement. The 2025-26 budget once again pledges to extend the programme, but questions remain about its effectiveness.
• Infrastructure Development: The government claims to have built thousands of kilometers of roads and bridges, yet rural connectivity remains a major challenge. Many road projects are still awaiting completion, and fresh allocations often mirror previous unfulfilled promises.
• Education Sector Promises: Every budget since 2021 has announced the establishment of new universities and medical colleges. The 2025-26 budget again reiterates these commitments, but with little visible progress.
The government’s focus on welfare schemes like the Mukhya Mantri Mahila Udyamita Abhiyaan and Jibon Prerana has been touted as a major success. However, these schemes are heavily dependent on central funds and state borrowings. The long-term sustainability of these initiatives remains questionable, as Assam’s own tax revenue growth has not kept pace with its expanding expenditure. The 2025-26 budget includes additional spending on these schemes but lacks clear strategies for increasing state revenues.
While the government has successfully positioned itself as a champion of development, the numbers paint a different picture. The continuous cycle of rebranded policies and increasing fiscal reliance on borrowings raise concerns about Assam’s financial stability. The 2025-26 budget once again paints an optimistic picture, but without tangible results on the ground, it risks being another set of unfulfilled promises.
