Economic disparity

Context: Assam’s economy ranks among the lowest in the country, ahead of only
Bihar, UP and Jharkhand. As per the latest RBI data, Assam’s per capita income
stands at Rs 1,35,787 for 2023-24, and States like Sikkim, Meghalaya and
Tripura fare better economically, while Andhra Pradesh and Delhi perform
significantly higher on the count. According to a World Bank assessment of
2018, one-third of the State’s then population of 3.1 crore were poor, and
while poverty levels in Assam had declined rapidly between 1994 and 2005, the
State has since lagged most other States in reducing poverty. The growing
number of beneficiaries also contrast ominously with the burgeoning figure of
the unemployed, with 32 lakh candidates recently applying for 12,600 grade III
and IV jobs.

Assam Budget Analysis 2024-25

·       Budget
highlights: The Gross State Domestic Product (GSDP) of Assam for 2024-25 (at current
prices) is projected to be Rs 6,43,089 crore, amounting to growth of 13% over
2023-24. Expenditure (excluding debt repayment) in 2024-25 is estimated to be
Rs 1,36,699 crore, a decrease of 9% from the revised estimates of 2023-24.  In addition, debt of Rs 7,192 crore will be
repaid by the state. Receipts (excluding borrowings) for 2024-25 are estimated
to be Rs 1,14,165 crore, a decrease of 5% as compared to the revised estimate
of 2023-24. Revenue surplus in 2024-25 is estimated to be 0.3% of GSDP (Rs
1,852 crore), as compared to a revenue deficit of 0.2% of GSDP (Rs 1,396 crore)
at the revised estimate stage in 2023-24. 
Assam had budgeted a revenue surplus of 0.5% of GSDP in 2023-24. Fiscal
deficit for 2024-25 is targeted at 3.5% of GSDP (Rs 22,534 crore).   In 2023-24, as per the revised estimates,
fiscal deficit is expected to be 5.2% of GSDP, higher than the budgeted 3.7% of
GSDP.

·       Policy
Highlights: Mukhya Mantri Nijut Moina - One-time incentives of Rs 10,000, Rs
12,500, and Rs 15,000 will be paid to 10 lakh girl students for joining class
11, graduation (first year), and post-graduation (first year), respectively. This
will be available for students taking admission in government colleges and
institutions.

Mukhya Mantri
Mahila Udyamita Abhiyaan - A minimum amount of Rs 47,500 will be provided to
each woman member of self-help groups in rural and urban areas.   This will be provided by a combination of
grant, subsidy, and loan.

Mukhya Mantri
Awaas Yojana (Gramin) - Under the scheme, 13,000 houses each will be
allocated to eligible beneficiaries from tea garden communities and poorest of
poor beneficiaries who were not included under the socio-economic caste census.

Rooftop solar - All new private
and public buildings constructed in Assam will have to mandatorily install
rooftop solar facility.

Farm
mechanisation - The state government will distribute power tillers, tractors, threshers,
and other farm equipment to support agricultural activities.

·       Assam’s
Economy: GSDP - In 2022-23, Assam’s GSDP (at constant prices) is estimated
to grow by 10.2% over the previous year. 
In comparison, India’s GDP is estimated to grow by 7.2% in 2022-23.

Sectors - In 2022-23,
agriculture, manufacturing, and services sectors are estimated to contribute
35%, 19%, and 45% of Assam’s economy, respectively.