Assam Budget 2025: The Good, The Bad, And The Ugly

As Assam gears up for the 2026 elections, the 2025 budget sets the stage for a politically strategic yet development-focused agenda.

The government has crafted a blueprint that prioritizes large-scale industrialization and infrastructure expansion while simultaneously rolling out an extensive welfare package loaded with freebies for various target groups. This dual-pronged approach aims to fuel economic growth while ensuring social security for key voter demographics. 

With massive investments in modernization, connectivity, and industrial growth, Assam is positioning itself as an emerging economic powerhouse. At the same time, freebies, direct financial assistance, and social welfare schemes strengthen the government’s appeal among women, farmers, tea tribes, and unemployed youth.

The 2025 budget is not just a financial statement—it is a carefully calibrated political document designed to balance progress with populism. Here we look at the Good, the Bad, and the Ugly of Assam Budget 2025.

The Good: Industrialization, Entrepreneurship, Modernization, and Innovation

Assam’s capital expenditure has grown nearly 10 times in the last 10 years, leading to rapid infrastructural and industrial development, something this budget gives further momentum too.

The proposed ₹2,000 crore Assam Industrial Momentum Fund will drive the creation of new industrial zones and promote ease of business through the Industry Area Local Authority (IALA), streamlining approvals for new enterprises. Assam will also establish India’s first Green Packaging Hub, supporting bioplastic startups and promoting eco-friendly industries. 

To strengthen Assam’s manufacturing ecosystem, ₹2,000 crore is allocated for the development of industrial parks in Dibrugarh, Golaghat, and Silchar. Meanwhile, the planned Bhutan-Bodoland-Bay of Bengal (B3) Economic Corridor aims to improve regional trade by linking Jogighopa and Phulbari, enhancing Assam’s connectivity in South Asia.

The budget provides ₹50 crore for TATA-NELCO’s STEM vocational centers in schools, equipping students with skills in AI, Robotics, and IoT. In a major boost to small businesses, ₹773 crores are earmarked under the flagship Chief Minister’s Atmanirbhar Asom Abhijan (CMAAA), directly benefiting over one lakh micro-entrepreneurs.

Women entrepreneurs will also benefit from the Mukhya Mantri Mahila Udyamita Abhiyaan, offering ₹10,000 as seed capital to 30 lakh rural SHG members and 2 lakh urban entrepreneurs.

The state is also pioneering India’s first AI-powered Tea Exchange, ensuring better price discovery for Assam’s signature tea industry, while an Anti-Deepfake Cyber-Surveillance Lab will enhance digital security, bringing in crucial police reforms.

To promote Assamese cinema and literature, the state also announced the launch of a state-run OTT platform. In an interesting move, the government has notified 2025 as a year of books, encouraging reading culture with ₹25,000 grants for 1,000 young writers and ₹1,000 book allowances for government employees.

In the wildlife sector, the Bon Mitra Abhijan enhances wildlife protection through AI-powered monitoring for elephant movements to reduce man-animal conflicts. 

The budget also allocates ₹550 crore for Assam’s first Proton Therapy Centre, one of only three in India, for advanced cancer treatment. This will be a fantastic addition to the already robust network of cancer-care hospitals in the state.

These initiatives set the foundation for a self-sustaining, industrially robust, and technologically advanced economy, ensuring long-term prosperity beyond the election cycle.

The Bad: Expanding Welfare Expenditure and State Capacity

While development remains a key focus, the government has also placed significant emphasis on social welfare, reinforcing its voter-friendly policies through freebies, financial assistance, and direct benefits to targeted groups. 

In addition to increasing wages for tea plantation workers, the budget allocates ₹342 crore for the welfare of tea garden workers, providing ₹5,000 one-time financial assistance for 6.8 lakh permanent and casual tea garden laborers. 

Under the “Anna Sewa se Jan Sewa” initiative, subsidized food essentials will be provided from October 2025, including ₹25/kg for Masur Dal, ₹20/kg for sugar, and ₹10/kg for salt. 

Additionally, a ₹300 crore targeted subsidy program will reduce electricity costs by ₹1 per unit for domestic category and Jeevan Dhara consumers, ahead of elections especially as the new Smart Meter System had generated some disapproval among the public.

Farmers will receive a ₹250/quintal bonus for paddy and maize and ₹500/quintal for mustard, ensuring above-market prices. Additionally, 500 Farmer Producer Organizations (FPOs) will each receive ₹10 lakhs under Mukhya Mantri Utkarsh Yojana to promote agribusiness and collective farming, a move that indicates the state’s refusal to move out of age-old collectivisation.

The Udaxin Bhakats scheme provides ₹1,500 per month to traditional religious leaders, while the Assam Darshan Scheme grants ₹3 lakh to over 17,000 religious institutions and 25,000 Naamghars. 

Job creation remains a priority, with 1,60,596 jobs planned, including 40,697 new recruitments in 2025, a move that unsurprisingly expands the government rather than reducing it, going against the Centre’s vision of ‘minimum government, maximum governance’.

Although the state’s debt-to-GSDP ratio is healthier compared to most states, the state’s expanding welfare base might become a problem in the long run as it risks dependence building on the government, along with greater fiscal pressure on successive governments. Worse, it pushes the state into a cycle of competitive welfarism at the cost of fiscal prudence.

The Ugly: Fiscal Ir-Responsibility

The financial outlay for the public sector continues to expand as the Old Pension Scheme (OPS) is reinstated for government employees recruited before February 2005, while a Unified Pension Scheme (UPS) offers an alternative to NPS, giving flexibility in retirement benefits.

A cashless medical treatment policy at CGHS rates has been introduced for government employees, along with incentives for solar energy adoption in a state with long monsoons.

The government also plans to ensure dignity for the dead by bearing expenses of transportation of deceased persons from outside the state to Assam. While it is a noble sentiment, this is an impractical and fiscally questionable policy, diverting public funds from pressing developmental needs.

But by far the most absurd announcement has been the scheme providing freebies to the unemployed. The Chief Minister’s Jibon Prerana initiative aims to provide ₹2,500 per month to 2025 graduates from government universities for up to one year in order to “aid job seekers.”

This is a classic election-oriented freebie that does little to address the root causes of unemployment. While framed as a measure to support job seekers, it risks fostering dependency rather than encouraging skill development or active job-searching. Temporary cash handouts do not create jobs or enhance employability—rather, they delay the problem while placing an unsustainable financial burden on the state. 

A more effective approach would have been to invest in vocational training, startup incubation, and industry-linked apprenticeship programs that equip young people with the skills or work experience needed for long-term employment.

A Calculated Mix of Growth and Welfare

The Assam government’s 2025 budget strategically balances economic expansion and populist welfare to ensure electoral success while positioning the state for long-term progress. With significant capital investments, direct financial assistance, and subsidies, the budget sets a roadmap that appeals to both industry stakeholders and common citizens. 

As the state heads into an election year, this budget reflects the government’s dual commitment to building a self-reliant Assam while securing its voter base through welfare guarantees. Whether this strategy pays off politically will be revealed in the months to come.