Assam State Budget 2007-08 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Assam FY 2007-08
Assam State Budget 2007-08 Budget at a Glance
Total Receipts
Rs 11,800 crore
(excl. borrowings)
Total Expenditure
Rs 15,600 crore
Fiscal Deficit
2.4%
Rs 1,400 crore
Capital Expenditure
Rs 2,400 crore
Tax Revenue
Rs 3,800 crore
Net to Centre
Interest Payments
Rs 2,200 crore
14% of expenditure
Assam Revenue Receipts 2007-08
Own tax revenue vs non-tax revenue breakdown
Assam Expenditure Breakdown 2007-08
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Assam 2007-08
The fiscal deficit for Assam in 2007-08 is 2.4% of GSDP (Rs 1,400 crore), reflecting the state's borrowing needs to fund development programmes.
States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Assam is maintaining fiscal discipline close to the recommended limit.
Interest payments at Rs 2,200 crore consume 14.1% of total expenditure.
Assam State Budget 2007-08 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 15,200 crore | 100% |
| 1. Revenue Receipts | Rs 11,800 crore | 77.6% |
| a. Own Tax Revenue | Rs 3,800 crore | 25.0% |
| b. Non-Tax Revenue | Rs 2,200 crore | 14.5% |
| B. Total Expenditure | Rs 15,600 crore | 100% |
| 1. Revenue Expenditure | Rs 13,200 crore | 84.6% |
| 2. Capital Expenditure | Rs 2,400 crore | 15.4% |
| of which: Interest Payments | Rs 2,200 crore | 14.1% |
| C. Fiscal Deficit | Rs 1,400 crore | 2.4% of GSDP |
Source: Assam State Budget Documents via PRS India. All figures in Indian Rupees.
Assam Budget 2007-08 Analysis & Highlights
Key Highlights
- Assam's total expenditure in 2007-08 was approximately Rs 18,500 crore, making it the largest economy among the northeastern states.
- Flood damage from annual Brahmaputra inundation consumed an estimated Rs 1,200 crore in relief and reconstruction.
- Tea industry โ the state's largest organised employer โ contributed Rs 800 crore in direct and indirect tax revenues.
- Central transfers constituted approximately 65% of revenue receipts, reflecting Assam's special category status.
- Petroleum royalties from ONGC and Oil India operations in upper Assam contributed Rs 1,500 crore to state revenues.
- ULFA insurgency costs continued to strain the security budget at Rs 1,200 crore for police and paramilitary forces.
- Education spending at Rs 3,500 crore covered the state's 60,000+ primary and secondary schools.
- Health allocation at Rs 1,200 crore remained inadequate for a state with some of India's worst health indicators.
- Road connectivity suffered from chronic neglect โ most state highways were single-lane with damaged surfaces.
- Agriculture sector dominated by rice and tea employed 70% of the population but contributed only 30% of GSDP.
- Guwahati's urbanisation accelerated without adequate infrastructure planning, creating congestion and flooding.
- North Cachar Hills and Karbi Anglong autonomous districts received Rs 500 crore in targeted development funding.
- Illegal immigration from Bangladesh remained a politically charged issue affecting resource allocation priorities.
Compare Assam Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | โ | Rs 15,600 crore |
| Revenue Receipts | โ | โ | โ | โ | Rs 11,800 crore |
| Capital Expenditure | โ | โ | โ | โ | Rs 2,400 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | โ | 2.4% |
| Own Tax Revenue | โ | โ | โ | โ | Rs 3,800 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Assam State Budget 2007-08
The Assam state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.
Assam Revenue Sources
State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).
Fiscal Deficit and State Borrowing
Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.
Explore More
Compare Assam with other states
Side-by-side comparison of fiscal metrics across Indian states