Guwahati: In recent years, the state government of Assam has followed the centre's footsteps in prioritizing 'green' initiatives in the budget. This year, the Northeast Indian state allocated 10.02 percent of the total budget (Rs 4636 crore) across 18 key departments to its green budget.

A 'green budget' basically entails using tools of budgetary policy-making to achieve environmental and climate goals to deliver national and international commitments. 

India's primary commitment - as far as the environment is concerned - is achieving 'net zero' carbon emissions status by 2070.  An ambitious target indeed for a nation that derives 75% of its power supply from fossil fuels, primarily coal. Thanks to new policies expect sweeping changes in the years ahead. The PM Surya Ghar Muft Bijlee Yojana could be a game changer in this regard - the central scheme aims to provide free electricity to one crore households who install rooftop solar electricity units.

So where does Assam fit into the picture?

The Northeast Indian state, located in the Indian Himalayan Region, is actually considered quite vulnerable to environmental degradation. The pristine countryside and never-ending farmlands sharply contrast with the rapid urbanization and industrial growth.

The budget of 2022-23 was considered a landmark for environmental preservation. The budget proposed initiatives such as green tax for scrapping old vehicles, the Assam Green Mission for increasing forest cover, climate resilient agriculture to popularise natural farming among farmers, Chief Minister’s fellowship for climate resilient villages, and envisioning green infrastructure under the Amrit-GiG city program, among others.

Last year, Chief Minister Himanta Biswa Sarma revealed that his government will target planting 8 crore seedlings next year and another 10 crore saplings in 2025.

"It is a very encouraging budget this year in terms of environmental sustainability and climate change", Assam Energy Development Agency (AEDA) director told Business North East. "Many schemes and initiatives have been declared to address climate change and in the field of renewable energy as well. For instance, it is observed that rooftop solar panel is given due priority."

“Green Growth is an essential pillar of Budget 2024", Biswa Sarma noted after Finance Minister Ajanta Neog's announcements. "Under this we will plant 3 crore saplings, introduce electric buses and set up over 1000 MW of renewable energy plants and rooftop solar plants."

Incorporating sustainability principles into public financial management (PFM) systems and procedures is likely to empower state governments to strengthen existing initiatives and identify fiscal space for funding new initiatives. Assam, at the moment, is not lagging behind.

ALSO READ: Assam to get a 2nd Ayurvedic college in Goalpara district