Assam Cabinet Clears 60% DA, Rs 500-Crore Dibrugarh Capital Region Plan and MLALAD Fund Hike

At its first meeting after the ministry expansion, the Assam Cabinet approved a DA increase for over 8 lakh beneficiaries, declared Dibrugarh the state’s second capital region and enhanced MLA development funds

Guwahati: The first meeting of the expanded Assam Cabinet on June 5 approved a series of major policy decisions, ranging from employee welfare measures and constituency development funding to the creation of a second capital region in Dibrugarh.

A key decision was the increase of Dearness Allowance (DA) and Dearness Relief (DR) for state government employees and pensioners from 58 per cent to 60 per cent, benefiting more than 8 lakh employees and pensioners across Assam.

Chief Minister Himanta Biswa Sarma, while briefing the media, also announced the development of Dibrugarh as Assam’s second capital region. The Cabinet approved the formation of the State Capital Region Development Authority, Dibrugarh (SCRDA-D) to oversee planned growth within a 20-km radius of the Dibrugarh Capital Complex. To support the initiative, the government will earmark Rs 500 crore through various departments for infrastructure development.

The Cabinet further approved a phased increase in the MLA Local Area Development (MLALAD) Fund, raising the allocation from Rs 1 crore to Rs 1.5 crore per MLA in 2026-27, and to Rs 2 crore from 2027-28. Legislators will also be allowed to use up to 10 per cent of the allocation for educational, cultural, sports and disability-support equipment.

Additionally, amendments to the Assam Secondary Education (Provincialised Schools) Service Rules, 2026 were cleared to streamline the promotion of Grade-IV employees to Grade-III posts in provincialised schools.

The Chief Minister also clarified that after the Vote-on-Account Budget period ends, beneficiaries will continue receiving government scheme benefits from August 1 without disruption. The Cabinet meeting also formalised the allocation of portfolios among newly inducted ministers.

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