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Assam State Budget 2008-09 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Assam FY 2008-09

Assam State Budget 2008-09 Budget at a Glance

Total Receipts

Rs 13,500 crore

+14.4%

Total Expenditure

Rs 18,400 crore

+17.9%

Fiscal Deficit

2.9%

Rs 1,900 crore

Capital Expenditure

Rs 2,800 crore

+16.7%

Tax Revenue

Rs 4,400 crore

+15.8%

Interest Payments

Rs 2,400 crore

13% of expenditure

Assam Revenue Receipts 2008-09

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 4,400 crore (63.8%)
Non-Tax Revenue
Rs 2,500 crore (36.2%)

Assam Expenditure Breakdown 2008-09

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 84.8%
Capital Expenditure 15.2%

Fiscal Deficit as % of GSDP โ€” Assam 2008-09

The fiscal deficit for Assam in 2008-09 is 2.9% of GSDP (Rs 1,900 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 2,400 crore consume 13.0% of total expenditure.

Assam State Budget 2008-09 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 17,200 crore100%
1. Revenue ReceiptsRs 13,500 crore78.5%
a. Own Tax RevenueRs 4,400 crore25.6%
b. Non-Tax RevenueRs 2,500 crore14.5%
B. Total ExpenditureRs 18,400 crore100%
1. Revenue ExpenditureRs 15,600 crore84.8%
2. Capital ExpenditureRs 2,800 crore15.2%
of which: Interest PaymentsRs 2,400 crore13.0%
C. Fiscal DeficitRs 1,900 crore2.9% of GSDP

Source: Assam State Budget Documents via PRS India. All figures in Indian Rupees.

Assam Budget 2008-09 Analysis & Highlights

Key Highlights

  • Total expenditure rose to approximately Rs 21,000 crore as the global financial crisis had limited direct impact on Assam's agricultural economy.
  • Sixth Pay Commission implementation added Rs 1,800 crore to the salary bill, significantly straining non-salary expenditure.
  • Petroleum royalties increased to Rs 1,700 crore as crude oil prices remained elevated despite the global downturn.
  • Flood damage in 2008 affected 25 districts and displaced over 30 lakh people in one of the worst flood seasons.
  • ULFA's military capacity was significantly degraded following operations from Bhutan and Bangladesh crackdowns.
  • Tea industry wages were revised upward under political pressure, increasing estate costs by 20%.
  • Education spending at Rs 4,000 crore included large-scale teacher recruitment to fill chronic vacancies.
  • NRHM funding boosted health allocation to Rs 1,500 crore with district hospital upgrades underway.
  • NREGA spending reached Rs 1,800 crore, becoming the largest rural employment programme.
  • Road construction received Rs 2,500 crore but monsoon damage negated much of the year's progress.
  • Guwahati city development received Rs 300 crore under JNNURM for water supply and drainage.
  • North East Industrial Policy incentives attracted Rs 2,000 crore in proposed manufacturing investments.
  • Bodo Territorial Council received enhanced development grants following the BTC peace accord.

Compare Assam Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2004-052005-062006-072007-082008-09
Total Expenditureโ€”โ€”โ€”Rs 15,600 croreRs 18,400 crore
Revenue Receiptsโ€”โ€”โ€”Rs 11,800 croreRs 13,500 crore
Capital Expenditureโ€”โ€”โ€”Rs 2,400 croreRs 2,800 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”2.4%2.9%
Own Tax Revenueโ€”โ€”โ€”Rs 3,800 croreRs 4,400 crore

Columns showing "โ€”" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Assam State Budget 2008-09

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.

Compare Assam with other states

Side-by-side comparison of fiscal metrics across Indian states