Assam FM Ajanta Neog tables State Budget 2023: Key Highlights

Assam Budget - Assam FM - State Budget 2023 - Key Highlights - Budget 2023 - Budget - Taxscan

The Finance Minister of the State of Assam, Ajanta Neog has presented the Budget for the Fiscal Year 2023-2024, introducing the “Green Budget” for the first time.

The Green Budget classifies Public Expenditure into 4 categories: ‘highly favourable’ (green), ‘moderately favourable’ (yellow), ‘neutral’ (grey), and ‘less-favourable’ (brown), based on its impact on the environment.

In the first year, 14 key departments having high relevance to the 9 vulnerable sectors identified under the Assam State Action Plan on Climate Change were tagged. These vulnerable sectors include Agriculture and Allied Sectors, Forestry and Biodiversity, Water Resources, and Energy among others. In the green budget, 81 schemes have been identified as ‘highly favourable’ with a budget allocation of Rs 1289 cr, 118 schemes as ‘moderately favourable’ with a budget allocation of Rs 4989 cr and 286 schemes as ‘Neutral’ with a budget allocation of Rs 10916 cr.

Some of the significant green schemes reported this year are, Mukhyamantri Soura Shakti Prakalpa, Electric Vehicle Policy, Green Innovation Fund, Mission Amrit Sarovar, Wetland Development Project, and the Rejuvenation of Kollong River, amongst others.

The following were presented as the flagship schemes of the upcoming fiscal year : —

i. Mukhya Mantri Sva-Niyojan Mission

ii. One Lakh Jobs

iii. Assam Micro-Finance Incentive and Relief Scheme (AMFIRS)

iv. Daridrata Nivaran

v. Pragyan Bharati

vi. Assam Urban Health Mission (AUHM)

vii. 200 years of Assam Tea

viii. Quest for Cultural Identity

ix. Mission for Prevention of Child Marriage

x. Amar Gaon Amar Gaurav

xi. Khel Maharan and Sanskritik Mahasangram

xii. Reviving the movement around women empowerment

xiii. Creating Growth Corridors

xiv. Right to Public Service Commission

xv. Standing with Our Employees – APUN GHOR, APUN BAHAN

xvi. New Infrastructure Push

xvii. Support to MSME sector

xviii. Mission Basundhara

Other major announcements for the FY 2023-24 include : –

i. Most Outstanding District Initiative (MODI): Swacch Zila Puruskar

ii. Implementation of Peace Accord

iii. Assam Police Emergency Management System (APEMS) – Dial 112

iv. Strengthening of Infrastructure for Police


vi. Cabinet Outreach Program

vii. Viability Gap Funding for Non-UDAN Routes

viii. Commercial Tree Plantation

ix. Exemption from Electricity Duty on Green Energy

x. Electric Vehicle (EV) Policy

xi. Climate Action

xii. Assam Mental Health & Social Care Scheme

xiii. Mobile Veterinary Units (MVUs) in Assam

xiv. Pension Fund for AAU

xv. Maximum Governance, Minimum Government

xvi. Mukhya Mantri Sohoj Griha Nirman Achoni (MMSGNA)

xvii. Drink from Tap (DFT) in Tezpur

xviii. Financial Institutional Reforms

xix. CCTV in Public Places

xx. Renaming of Directorate of Tea Tribes Welfare into ‘Directorate of Tea Tribes and Adivasi Welfare’

Major taxation, cess and other levies and duties proposed to undergo amendments are —

Exemption from Electricity Duty on Green Energy:

To promote and incentivize the generation and consumption of green and clean energy by trade and industries, the Finance Minister proposed to give exemption from payment of electricity duty on generation of power from renewable sources for captive consumption for one year. FM Ajanta Neog further appealed to all to come forward and take advantage of this exemption and contribute to the cause of renewable energy.

Electric Vehicle (EV) Policy:

In order to further promote use of electric vehicles, Ajanta Neog announced motor vehicle tax subvention of 2 per cent along with registration fee exemption to citizens buying EVs this year. The Transport Department will issue operational guidelines for the same, the Assam Finance Minister added.

Proposal of extension of Tax-Holiday for Agricultural Income Tax:

The FM proposed an extension of tax holiday on Agricultural Income Tax for a period of next three years.

Recounting the reforms:

Ajanta Neog further reiterated the “announced decisions regarding exemption of electricity Duty on Renewable energy generation, continuing of Agricultural Income Tax holiday. Our government has focused on improving tax collection and raising tax revenue through the constitution of a GST Economic Intelligence Unit (EIU), a dedicated GST Audit Cell at Apex office and Institutional Strengthening through Capacity Building of officers and Exposure Visits to top performing States.”

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