Assam hopes for higher tax devolution in Union Budget 2026–27: CM Sarma

Guwahati, Feb 1: Assam Chief Minister Himanta Biswa Sarma, on Sunday, said he is hopeful that the Union Budget for 2026–27 would provide the state with a higher share of tax devolution compared to the previous fiscal.

Speaking to the press ahead of the Budget presentation, Sarma said states closely track the extent of revenue devolution announced each year.

“We look at how much revenue devolution is done in the budget. We see how much money was given to us last fiscal, and how much will be allocated this year. I am sure that we will get more funds this time compared to last year,” he said.

The Chief Minister noted that the nature of Union Budget announcements for states had evolved over the years.

Referring to earlier practices, he said that allocations were once centred on individual projects such as the introduction of a Rajdhani Express.

“Earlier, Union budgets used to include one train or one project to the state. However, these have become very ordinary things nowadays,” Sarma remarked, suggesting that broader fiscal transfers now matter more to states than project-specific announcements.

Meanwhile, Union Finance Minister Nirmala Sitharaman began presenting the Union Budget in the Lok Sabha at 11 am on Sunday.

Sitharaman created history by delivering her ninth consecutive Budget, the highest by any finance minister.

During the session, Sitharaman also laid the report of the 16th Finance Commission in the House, which outlines the framework for tax revenue devolution between the Centre and the states for the 2026–2031 period.

The Finance Commission, a constitutional body, is tasked with recommending the formula for sharing central taxes with states and advising on Centre-state financial relations.

Notably, cesses and surcharges levied by the Centre do not form part of the divisible tax pool.

The 16th Finance Commission, chaired by former NITI Aayog Vice-Chairman Arvind Panagariya, was constituted on December 31, 2023.

PTI