The Assam Chief Minister cum Finance Minister, Tarun Gagoi announced state budget 2015-16 which was a pro-poor, pro-women budget with a minimum deficit of just about Rs 26.32 crores and estimates a surplus of over Rs 1,610 crore..

About various measures proposed in the budget, Gogoi said it is estimated that the collections from excise revenue would increase to Rs 1,250 crore from the current level of Rs 650 crore.

The Finance Minister proposed to introduce the state of the art IT enabled taxation system with online tax compliance facilities to arrest leakages and would raise tax collection by 4-5%. Though there were no new tax proposals, existing VAT rates were changed without burdening the common men. Some changes proposed were:

• For the benefit of patients, Medicinal oxygen and Cancer drugs are exempt from VAT (earlier taxed @ 5%)

• VAT on auction sale of tea in GTAC is retained, while VAT on private tea sale hiked from 1% to 2%

• Handmade jewelry, school bags costing less than Rs. 250, pens and pencils costing less than Rs.10 is to be brought under the roof of exemption.

• To encourage Sericulture in the state, HDPE cocoon crates, plastic harvest boxes, silkworm rearing trays is proposed to be exempted.

• Also exemption is brought forward to the embroidery, jari, chumki, beads, glass bangles, and sarees below Rs 500 for the interest of women.

Budget 2015-16 - Finance Minister's Speech.