Assam’s Finance Minister Mrs. Ajanta Neog tabled the annual Budget for fiscal year 2021-22 in the Legislative Assembly on Friday. This is the first state Budget under the new BJP-led government headed by the dynamic chief minister, Dr Himanta Biswa Sarma.

Increase in Capital Expenditure

In his previous roles, our Honourable CM has showcased his ability in successfully implementing all the schemes that were under his purview. In this budget, the Assam government has increased capital expenditure to 21.5%. This budget has seen the highest ever allocation to Capital Expenditure in the history of Assam. 

We are expecting the same level of commitment in implementation of the Capex schemes announced in the budget yesterday. 

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Assam Microfinance Incentive and Relief Scheme (AMFIRS) 2021

We have been witnessing farm loan and micro finance loan waiver’s across the country. However, in our opinion, this has been the best designed microfinance waiver scheme, wherein moral hazards have been taken care of.  

Along with providing relief to the defaulters, the government in its budget has also taken care of the one’s who have made the payments regularly by incentivising them. This move shall boost the morale of the borrowers and encourage them to continue making regular payments.   

The Microfinance Incentive Scheme provided the following reliefs: 

Category I: Rs 25,000 to be provided for regular repayment of loans and maintaining good credit discipline. 

Category II: The government shall clear overdue amount if payment is overdue by 1-89 days. An incentive of Rs 25,000 shall be paid after restarting regular repayment. 

Category III: Meanwhile, loans categorized as nonperforming asset are to be disposed of with Rs 7,500 crore state funds and Rs 4,000 crore benefits shall be transferred by lenders.

Employment for economic growth

The state government shall provide employment for economic growth and one lakh vacancies are directed to be filled up across 48 state government departments. 


  • The Government should consider focusing on strengthening the functionality of its municipalities and improving the efficiency of tax collection procedures.    
  • Should also be focusing on increasing Private Sector Investment and Industrial Development in the state and generating employment opportunities for the youth.
  • By developing and improving infrastructure through Capex Expansion, the government can ensure holistic economic development across all strata’s of the society.

Pallav Bagria is the Director at Sapient Wealth Advisors & Brokers with over 15 years of experience in wealth management. He has been associated with many innovative and first-of-its-kind ventures and collaborations in Northeast India.

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