AssamExam

Highlights of Assam Budget 2019-20 - Highlights & Detailed Analysis

Download Assam Budget 2019-20 Highlights & Analysis – PDF

 

Assam Budget 2019-20

Assam finance minister Himanta Biswa Sarma presented the state budget for the financial year 2019-20 on 6^th February, 2019 at the state Legislative Assam assembly.  This is the second digital budget of the state.

Assam Budget 2019 is dedicated to each of 3 crore & 30 lakhs population of our state, their happiness health & positivity. Each of the proposals of Assam Budget 2019 is in consonance with philosophy of Sarve Bhavantu Sukhinah, the greater well-being of people of this great State Assam.

Finance Minister Himanta Biswa Sarma started Assam Budget 2019 speech by saying: ‘Itu Bitupon, Dharma Sanatan Aakexe Kirtan, Kore Sdhujon’ Magnificent and sublime is the eternal faith which inspires the noble man to sing to the holy tune!

 

Sector-Wise Analysis

 

 Social Welfare

• Vistarita Atal Amrit Abhiyan, a cashless healthcare scheme for families whose income is Rs.5 lakhs or less. Propose to expand the coverage of AAA.
• In 2017, announced Kanaklata Mahila Sabalikaran Yojana with vision of promoting self-help groups. Provided financial support to tune of Rs 184.89 crore to 1.32 Lakh SHGs.
• 15 Lakh beneficiaries have been paid stipend under Deen Dayal Divyangyan Sahayjya Asoni amounting to Rs138 crore. An outlay sum of Rs200 crore for these initiatives under Assam Budget 2019 is allocated.
• Indira Miri Universal Widow Pension Scheme is dedicated to Smt Indira Miri. Allocated Rs136 crore in Assam Budget 2019 to cover 40,000 families under ‘Immediate Family Assistance Scheme’ & an estimated 2.4 Lakh widows under this scheme.
• Rs 25,000 immediate assistance to widows below 45 years. – A new scheme under which any woman, upto age of 45 years, who loses her husband, will receive a lump sum amount of Rs 25,000 as Immediate Family Assistance which will support the family tide over the financial vacuum created by the loss of the bread earner
• Central Govt is providing Old Age Pension for 7 lakh persons & almost equal number of beneficiaries are being covered by state government. I am allocating 250 crore for the scheme with commitment to provide more funds when new beneficiaries are identified.
• Govt also passed the PRANAM Act, 2017 that strongly advised government employees to assure the security of senior citizens and the elderly people do not face abuse and are never deprived of their dignity in their old age.
• Govt will give one tola gold (costs around Rs 38,000 as on today) to brides belonging to all such communities of Assam where it is customary to provide gold at the time of wedding. While other parts of India is plagued with the curse of dowry, in Assamese society, this is a voluntary act of assurance from the parents that no matter where she is, their support is always with her. This constitutes a part of the Stree-dhana.”
• Earmarking Rs 300 crore for Arundhati. Benefit under Arundhati can be availed upon formal registration of marriages under Special Marriage (Assam) Rules, 1954 & will reach beneficiaries right in time for the social marriage. It will be limited to only economically weaker sections, whose ann income is below Rs 5 lakh.
• New scheme will be launched where rice will be sold at Rs 1/kg; 53 lakh families to benefit.
• 10 lakh aid will be given to each 108 religious places of all faith that are 100 years old in the state.
• Launch of Bhasha Gaurav Achoni scheme for the protection and promotion of tribal languages of the state
• Proposal to mitigate 380 arsenic affected habitations and 7 fluoride affected habitations
• Near 1100 families have benefited under Compassionate Family Pension Scheme.

 Education

• Free textbooks to students up-to degree level from present level of Class XII, for children of families having annual income below Rs 2 lakh.
• E-bike for students passing class XII state board in first division. The government will also provide free uniform to students of class IX and X.
• All college students from tea garden community to get Rs 10,000 monthly stipends.
• Rs 200 crores earmarked for Minority Girls Scholarship Scheme in Assam Budget 2019. Minority Girls Scholarship Scheme– A step towards education of girls belonging to minority. The scheme will encourage the girls to continue higher education. This scheme will be launched from Financial Year 2019-20.
• A University for Divyangjan to be set up in Boko, Kamrup district under Deen Dayal Divyang Sahayjya Asoni scheme. It is one of the biggest initiatives to aid Divyang persons.
• Gyan Deepika – The government will enhance parental income level of Rs. 1 lakh to Rs. 2 lakh for free admission.

 CULTURE & TOURISM

• Three giant statues of Assam Monarchs- Kumar Bhaskaravarman, Chaolung Siu-ka-Pha and Maharaj Nara-Narayana to be built at the state secretariat as icons of good governance.
• Rs 155 crore given for the renovation of Batadrava Than, the sacred birth place of Mahapurusha Srimanta Sankaradeva, at Bordowa, Nagaon.
• Rs 25 crore sanctioned for development of tombs of Ahom Kings as tourist attraction.
• Rise of domestic tourist footfalls from 57,13,156 to 59,34,791 and from 28,419 to 31,739 in respect of foreign tourists

 GOVERNANCE

• Village headmen to get smartphones to stay connected with the district administration

 SPORTS

• One time cash incentive worth Rs 50,000 for a total of 2000 sports and arts personalities for their contribution.

 ECONOMY

• Construction of a new crude oil pipeline from Paradip Port to Numaligarh Refinery at a cost of Rs. 22,594 crore.
• Rs 2200 crore sanctioned for the construction of 6-lane bridge over Brahmaputra river in Guwahati
• Proposal to enhance threshold limit for registration under GST for supplier of goods to Rs 40 lakhs.
• For MSME sector, annual turnover limit for availing Composition Scheme enhanced to Rs 1.5 crore
• Scheme to rehabilitate boatmen who have lost jobs after the India’s two longest bridges were completed over Brahmaputra.
• Rs 100 crore earmarked for developmental and employment related activities for indigenous Muslims of the state.

 

MAJOR ANNOUNCEMENTS

I. Aami Axomiya Initiative

• Propose to appoint a Welfare Officer in each of the Tier 1 and Tier 2 cities which has a sizeable Assamese diaspora.
• These Welfare Officers will support the distressed during times of medical emergency, provide assistance to young students to adjust to a new city and provide a temporary monetary assistance of immediate nature to those who have lost their jobs.
• Further, depending on the availability of land, will also strive to construct Namghars in cities with sizeable Assamese diaspora.
• Will also provide immediate logistical and financial assistance in cases of death of Assamese people living outside the State to provide the families of the deceased some succor during this time of grief.

II. Bhasha Gaurav Asoni

• Protection and preservation of the rights, language and cultural traditions of the indigenous people of our state.
• To ensuring that vernacular languages and dialects are preserved and promoted.
• Will promote research of individual tribal languages helping them to develop grammar, publish books in their languages, and also develop dictionaries and encyclopedias in their languages. Various learning centres for the young students can
• Earmarked Rs.50 crores in financial year 2019-20 out of the total budgetary commitment of Rs. 100 crore.

III. City Infrastructure Development Fund

• In the Budget of 2017-18 a new scheme of City Infra Development Fund (CIDF) was
• This scheme is aimed at increasing the Urban Infrastructure by carrying out infrastructure projects in 6 large cities (except Guwahati). Subsequently, the Budget of 2018-19 announced CIDF schemes of middle tier towns, having population of above 40,000.
• Expanding CIDF to the 6^th Scheduled areas which are the priority areas of this Government and create long felt need for amenities in the three beautiful towns namely Kokrajhar, Diphu and Haflong.
• Each town under this scheme will be Rs. 100 crores.
• Allocating Rs. 300 crore in the Budget for the year 2019-20 for CIDF.

IV. Incentive to the Technicians and Artists of Mobile Theatres of Assam

• Provide a one-time grant of Rs. 50,000 for theatre artists and technicians, who have spent at least 5 years with the industry as a recognition of their efforts and outstanding contribution to this art form.
• Earmarked a sum of 5 crore for the same Budget 2019-20.

V. One-Time Financial Assistance to 2000 leading Sports & Cultural Personalities

• Hima Das and Ms. Rima Das have not just become household names across the country but have also taken the Assamese pride a notch higher with their outstanding achievements in the field of Sports and Cinema respectively.
• To express appreciation to these icons and to encourage others, will give a one-time cash incentive of Rs. 50,000 each to total 2000 Sporting and Art Personalities for their contributions.

VI. Property Tax Amnesty for property owners in Guwahati

• Residential and commercial buildings in Guwahati were constructed without complying with the building byelaws of Guwahati Metropolitan Development Authority (GMDA)
• Government has decided to introduce a one-time amnesty scheme for property tax payers in Guwahati.
• On voluntary declaration of their building violations, a one-time settlement and regularisation of the construction will be done against the payment of the building violation penalties.

VII. Restoration of Batadrava Than

• In 1468, Srimanta Sankardev established the very first Kirtanghar of Assam at Batadrava for propagation of the Ek Saran Nam Dharma founded by him to bring together our people, breaking the barriers of caste, race or ethnicity.
• He built the ‘Monikut’ together with Kirtanghar or Namghar and the Chari-Hati for accommodation of his disciples. This institution complex, now called as Sri Sri Batadrava Than, was completed in 1509.
• The condition of Sri Sri Batadrava Than currently has deteriorated due to lack of proper maintenance.
• Even the land belonging to this sacred Than was under encroachment which our Government has freed. It is overdue that this place is renovated and brought back to its original glory!
• Propose an amount of Rs. 155 crore over the next 3 years.

VIII. Mobile Phones for Gaon Burahs

• Gaon Burahs play a major role in maintaining the peace and brotherhood in rural Assam.
• Propose to provide each of the 8000+ Gaon Burahs with smart phones.
• Allocated Rs. 4 crore for this initiative in this year’s budget.

IX. Charaideo Maidams

• Charaideo Maidams are an intrinsic part of the Assamese culture and an important archaeological asset of the State.
• There have been calls for the sight to be listed as UNESCO World Heritage site. Steps will also be taken to promote this site as a major tourist attraction of the State and will initiate the efforts towards listing the site as a UNESCO World Heritage Site.
• For the development of this important of this historical site, earmarked Rs.25 crores in this Budget and the Cultural Affairs Department will implement this scheme in consultation with the stakeholders.

X. Package for Integrated Development of Majuli Island (PIDMI)

• Majuli is indeed at the heart of the Assam’s cultural heritage.
• However, due to the perennial floods in the mighty Brahmaputra, this river island is gradually eroding.
• Will provide a funding of Rs. 150 crore over medium term. Earmarking a sum of Rs. 50 crore for the integrated development of Majuli in this year’s budget.

XI. State Level Mega Skill Development Scheme

• The Government plans to provide comprehensive skill training to the youth of the State so that they can obtain gainful employment in different priority sectors.
• Earmark Rs. 77 crore for this scheme for the year 2019-20.

XII. Dharmajyoti Scheme

• Government of Assam has been providing 50% subsidy to pilgrims who visit various holy places related to Assamese culture and heritage.
• To ensure that more people are able to visit these temples government has decided to increase the subsidy for this scheme to 75% from 2019-20 and I am earmarking sufficient budget for this.

XIII. Statues of Kumar Bhaskaravarman, Chaolung Siu-Ka-Pha and Maharaj Nara-Narayana

• Assam has seen some legendary rulers during the last millennium, the most prominent and well-known among them are Kumar Bhaskarvarman, most illustrious of the monarchs of the ancient kingdom of Kamarupa, the founder of the Ahom Kingdom – Chaolung Siu-Ka-Pha, and the last ruler of the undivided Koch Kingdom – Maharaj Nara Narayana
• it is essential to remember the great rulers of our State and to this effect, govt. have decided to install giant statues of Kumar Bhaskaravarman, Chaolung Siu-Ka-Pha, and Maharaj Nara-Narayana in the Assam Secretariat Complex.

XIV. Initiatives for Preserving Cultural Heritage

• Govt announce the following initiatives:

(a) Swargadeo Smriti Khetra at Charaideo in memory of the 42 great swargadeos of the Ahom Dynasty

(b) Siu-ka-pha Chair in Dibrugarh University in the memory of Siu-Ka-Pha, the first Ahom king and founder of the Ahom kingdom

(c) Museum in the name of Motok King Sarbananda Singha who is one of our royal icons.

(d) Will create Samannay Khetra in the name of Sati Radhika in Majuli, Sati Sadhini in Sadia and Bhimbor Deori samannay khetra in Bihpuria

(e) Viswa Mahabir Chilarai Sanskritik Kala Ketra in North Guwahati

(f) Govt will also develop the second capital of Ahom Kingdom – Habung, established by Chaolung Siu-Ka-Pha, as international research destination for Tai-Ahom culture.

XV. Relief package for boatmen, restaurant, etc. affected by the opening of Dhola-Sadia and Bogibeel Bridges

• The inauguration of the Dhola-Sadia and Bogibeel Bridges has been a moment of pride and a boon for most of us in the State has also brought misfortune for the boatmen, restaurant owners and others who have lost their income sources.
• In order to ensure that they are not left with a source of income our Government has decided to rehabilitate such individuals with an alternate source of income through the enterprise of the Inland Water Transport Department and govt earmarked Rs. 5 crore initially, for this scheme in this year’s budget.

XVI. Incentives for organizing Assamese traditional sports

• During the last two years, government has made sincere efforts for the upgradation of sports infrastructure in Assam with our vision of making Guwahati as the ‘Sports Capital of India’.
• will devote equal attention towards encouraging our traditional Assamese sports such as Nau Khel, Kaar Khel, Kori Khel, Ghila Khel Maal juj, Haatur, etc. which are extremely popular among our people.
• Government has decided to organize a Traditional Sports Festival in Assam in 2019-20, along with taking other initiatives to showcase the richness of our traditional sports.

XVII. Training facility for UPSC/APSC exams for young students

• Government focuses in providing training facilities for UPSC & APSC exams for the students of these communities.
• Last year, introduced an initiative for providing UPSC/APSC training facilities for the students from the tea tribes and this year, will set up similar facility for the students from the Moran and Motok communities.

XVIII. Formation of new district

• Govt have decided to create a separate new district from the existing Dima Hasao district considering its large geography and hilly terrain which makes the access of government services difficult for the citizens.

XIX. Beneficiaries Data Hub for the State of Assam

• Announced the setting up of a Beneficiaries Data Hub in the state. This system would be housed within the Finance Department, and would be given better shape with the help of other departments like IT, P&RD, Social Welfare, Health, Education, etc.

XX. Provision of Additional Classrooms, Partition Walls, and Electricity in Elementary Schools

• NABARD has approved Rs.438 crores for Financial Year 18-19 for the improvement of the schools and the work will start very soon.
• In 2018, Govt conducted the 2nd round of Gunotsav in 33 districts covering nearly 36 Lakh children from Class-II to Class-IX, to assess the qualitative achievement level of learners in terms of scholastic and co-scholastic aspect and infrastructural assessment of the school and remedial measures on the gaps identified and to provide remedial Support thereof.
• In continuance of endeavour to bridge the infrastructural gaps in our schools, earmarking a sum of Rs.219 crore for this scheme in budget 2019-20.

XXI. Incentives for ANM and GNM in Rural Areas

• The rate of Infant Mortality (IMR) and Maternal Mortality (MMR) has seen a steady decline over the past decade.
• From an IMR of 67 of 1000 in 2006, this has come down to 44 (out of every 1000 births) in 2016, while the MMR has come down from 480 deaths (out of every 100000 births) in 2006 to 237 in 2016.
• Announcing an allowance of Rs. 1500 per month for every GNM and Rs. 750 per month for every ANM as rural allowance on the lines of a similar allowance already being given to the doctors posted in far flung areas.

XXII. Creation of Development Corporation for Indigenous Muslims

• The Indigenous Muslims of Assam – Goria, Moria, Ujani, Deshi, Jola, Poimal, Syed, etc.- have always played an extremely important role in the social and economic progress of the State.
• Will establish a Development Corporation for the Indigenous Muslims which will take up various programs aimed at the holistic development of this section of the society, including self-employment activities, provisioning banking linkages etc.
• Allocated a sum of Rs. 100 crore for taking up various developmental and employment related activities.

XXIII. Solidarity Fund to Meghalaya for National Games, 2022

• Assam hosted the National Games in the year 2007 and extend our support to Meghalaya and wish them the very best for organizing the ‘Best-ever’ National Games.
• To this effect, as a goodwill gesture, Assam would like to give a solidarity fund of Rs. 10 crore to the Government of Meghalaya.

XXIV. Developmental Initiatives for Positive Engagement of Society

• To actively create various opportunities for positive engagement of youth residing in the Tinsukia – Charaideo – Dibrugarh area.
• These districts are mostly inhabited by our indigenous communities such as Moran, Motok, etc. The funds allocated for these schemes will be utilized for initiatives in the fields of sports, skill development, livelihoods and entrepreneurship, and importantly, emotional connect with special outreach programmes such as development of monuments, construction of statues, preservation of historical sites, etc.
• Earmarked a sum of Rs. 500 crore for this important scheme and providing a sum of Rs.100 crore in the current budget.

XXV. Special Grants to VI^th Schedule Areas

• As an indication of commitment to the Bodoland Territorial Council (BTC), promised a sum of Rs. 1000 crore as special grant over a period of three years, Govt have already released funds worth Rs. 600 crores so far.
• Started the construction of Kokrajhar Medical College with an outlay of Rs. 382.70 crore.
• During this financial year, will take two other important initiatives viz. setting up of a Sports College in Kokrajhar and a Forest School in Chirang.
• Will provide funds of Rs. 300 crore to BTC and will provide an additional infrastructure support of Rs.50 crore in BTC area.
• In Karbi Anglong, promised a special grant of Rs. 10 crore for each of the 26 constituencies of Autonomous Councils. Shall release the remaining sum of Rs. 160 crore in year 2019-20 thereby fulfilling our commitment.
• Almost completed the construction of Diphu Medical College and hope to start the Medical College Hospital in 2019-20.
• Announced several projects for developing Dima Hasao into a model district and also taken up preparatory works for setting up a Civil Services Academy for the officers of Assam Civil Services cadres in Umrangso. Would also like to allocate an additional Rs. 10 crore for various development projects under each of the 26 constituencies of Autonomous Councils over a period of three years. Allocated an initial sum of Rs. 87 crore in the current budget for these schemes.

XXVI. Employee Welfare Measures

Some of the employee benefit related initiatives launched and the outcomes of those:

(a) In Budget 2017-18, implemented the 7th Pay commission awards for all the

government employees. All arrears on account of this have also been paid in the last financial year.

(b) Bidyalakshmi Scheme which was announced in 2017-18, banks have so far disbursed educational loans of over Rs. 30 crores benefitting hundreds of young students.

(c) Under the Apun Ghar scheme which was announced in the Budget 2016-17, loans for 19,261 new homes of the employees amounting to Rs. 2288 crores have been sanctioned.

(d) Under the Compassionate Family Pension scheme announced in the budget 2017-18, ensured sustained income to the family of the deceased employee by providing full pay of the deceased employee to the family.

Announce some additional schemes for the welfare of government employees:

(a) Extending Apun Ghar interest subvention on all the home loans taken prior to the launch of Apun Ghar scheme.

(b) A Cashless Health Assurance scheme for government employees will be rolled out from this year which will also enable them treatment across leading hospitals in India.

(c) Under the National Pension System (NPS), the mandatory contribution by the Government for its employees covered under NPS Tier-I account will be increased from 10% to 14% in line with the decision of Government of India.

(d) The Gyan Deepika scheme announced in this budget, students who have taken higher education loans from the banks will receive a one-time grant of Rs. 50,000.

(e) Under the Aapunar Apun Ghar scheme announced in this budget, providing home loan subsidy to all the citizens of Assam who opt for loans under this scheme. Thus, any Government employee who does not wish to avail loan under Apun Ghar scheme can opt for the benefits under the Aapunar Apun Ghar scheme.

XXVII. Assamese as a subject in schools

• Presently, there is no compulsion on the part of a student to study Assamese language while pursuing education in Assam.
• Propose that in Class IX and X, a student has to take Assamese subject as Modern Indian Language (MIL) or as Elective subject except in Sixth Schedule areas and Barak Valley.

 

FISCAL SCENARIO

• Fiscal deficit rises to 2 per cent in 2017-18 from 2.4 per cent in 2016-17, primarily due to the implementation of the recommendation of the 7th Pay Commission.
• Budget of estimated Rs. 99418.91 crore, but no additional tax.
• Revenue account Rs 79742.26 crore
• Capital account Rs 19676.65 crore
• Assam will cross Rs 70,000 crore in expenditure, a new mark in the state. The revenue earning has increased by 20 per cent.

Breakup of Revenue Receipt for the year 2019-20 –

During the financial year 2019-20, the revenue of the State is estimated at Rs.294981.13 Crore, out of which Rs.98339.05 Crore is from the Consolidated Fund, Rs.100.00 Crore is from the Contingency Fund and Rs. 194855.42 Crore from the Public Account.

Breakup of Expenditure for the year 2019-20 –

Out of the total estimated expenditure of Rs.294374.33 Crore during 2019-20, out of which Rs.99418.91 Crore is from the Consolidated Fund, Rs.100.00 Crore is from the Contingency Fund and Rs.194855.42 Crore from the Public Account.

 

Glossary of Terms

 

Consolidated Fund

All revenues received by the Government including tax and non-tax revenues, loans raised and repayment of loans given (including the interest thereon) form the Consolidated Fund. All expenditure and disbursements of the Government, including release of loans and repayments of loans taken (and the interest thereon), are met from this fund.

Contingency Fund

A reserve fund set aside for possible unforeseen expenditure and established under Article 267(2) of the Constitution. It is an imprest placed at the disposal of the Governor.

Public Account

All public moneys received, other than those credited to the Consolidated Fund, are accounted for under the Public Account. In respect of such receipts, Government acts as a banker or trustee. The Public Account comprises of repayable like Small Savings and Provident Funds, Reserve Fund, Deposits and Advances, Suspense and Miscellaneous transaction (adjusting entries pending booking to fi nal heads of account), Remitances between accounting entitiees, and Cash Balance.

Deficit

Refers to the gap between Revenue and Expenditure. The kind of defi cit, how the defi cit is fi nanced, and applica􀆟 on of funds are important indicators of prudence in Financial Management.

Revenue Deficit/ Surplus

Refers to the gap between Revenue Receipts and Revenue Expenditure. Revenue Expenditure is required to maintain the existing establishment of Government and ideally, should be fully met from Revenue Receipts.

Types of Receipts

 

Tax Revenue

Comprises taxes collected and retained by the State and State’s share of Union taxes under Article 280(3) of the Constitution.

Non-Tax Revenue

Includes interest receipts, dividends, profits etc.

Grants-in-Aid

Essentially, a form of Central Assistance to the State Government from the Union Government. Includes ‘External Grant Assistance’ and ‘Aid Material and Equipment’ received from foreign governments and channelized through the Union Government. In turn, the State Governments also give Grants-in-aid to institutions like 6th Schedule Councils, Panchayati Raj Institutions, Autonomous Bodies etc.

Capital Receipts

These are loans raised by the Government from the public (these are termed as market loans), borrowings by the Government from the Reserve Bank of India and other parties through the sale of Treasury Bills, the loans received from foreign Governments and bodies, disinvestment receipts and recoveries of loans from State and Union Territory Governments and other parties.

Expenditure is classified as Revenue Expenditure and Capital Expenditure.

Revenue Expenditure

Revenue Expenditure is an amount to meet the day-to-day running of the Government departments and for rendering of various services, making interest payments on debt, meeting subsidies, etc.

Capital Expenditure

Capital Expenditure is an amount to create permanent assets, or to enhance the utility of such assets, or to reduce permanent liabilities. Examples of capital expenditure are acquisition of assets like land, buildings, machinery, equipment, investments in shares, etc.

Go To Assam Budget 2018-19 – Highlights and Analysis

 

Download Assam Budget 2019-20 Highlights & Analysis – PDF