The Assam Cabinet approved a 2-percentage-point increase in Dearness Allowance (DA) and Dearness Relief (DR), raising rates from 58% to 60% with immediate effect. The decision will benefit more than 8 lakh state government employees and pensioners, including serving employees, pensioners, family pensioners, extraordinary pensioners and compassionate family pensioners. Officials said the move is intended to partially offset inflationary pressure on fixed incomes and strengthen social security for retired workers.
MLALAD allocation increased, guidelines relaxed
The cabinet also approved an increase in the MLA Local Area Development (MLALAD) fund from Rs 1 crore to Rs 1.5 crore per MLA for the financial year 2026–27. From FY 2027–28, the annual allocation will be further raised to Rs 2 crore per MLA. Alongside the funding boost, the government amended MLALAD guidelines to permit up to 10% of the annual allocation to be used for procurement and distribution of specified community, educational, cultural, sports and disability-support equipment. The change aims to give legislators more flexibility to fund durable community assets.
State Govt employees' and pensioners' DA/DR has been hiked to 60% effective June 2026.#AssamCabinet pic.twitter.com/Nxqwpjred9
— Himanta Biswa Sarma (@himantabiswa) June 5, 2026
2nd State Capital Region for Dibrugarh approved
In a major administrative decision, the cabinet approved the declaration of the Second State Capital Region Area, Dibrugarh, and sanctioned the constitution of the Second State Capital Region Development Authority, Dibrugarh (SCRDA‑D). The designated region will cover a 20‑kilometre radius around the Dibrugarh Capital Complex within Dibrugarh district. A cabinet release said SCRDA‑D will prepare regional and sectoral development plans, identify growth corridors and determine urban expansion areas linked to development of the second capital region.
Structure, leadership and funding for SCRDA‑D
SCRDA‑D will be chaired by the MLA of Dibrugarh, who will hold cabinet rank as Chairman. The Authority’s leadership will include the Secretary of the Department of Housing and Urban Affairs (DoHUA) as Vice‑Chairman, the District Commissioner as Member‑Secretary, the CEO of SSCRDA, the Commissioner of Dibrugarh Municipal Corporation, the CEO of Zilla Parishad and District Heads of Departments as ex‑officio members. The cabinet approved provision of a Rs 500‑crore fund in the budget of the concerned line departments to finance infrastructure works related to the Second Capital Region.
Administrative reform for provincialised school staff promotions
The cabinet approved amendments to the Assam Secondary Education (Provincialised Schools) Service (Amendment) Rules, 2026 — specifically to Rule 5(2) and Rule 16(4) of the principal rules — to regulate the procedure for promotion of serving Grade IV employees to Grade III posts. The change is geared toward streamlining career progression and formalising promotion norms for support staff in provincialized secondary schools.
Taken together, the package of measures signals the Assam government’s dual focus on social welfare and regional development. The DA/DR increase provides an immediate economic relief to a large cohort of employees and pensioners, while MLALAD enhancements and the creation of SCRDA‑D aim to channel resources into local infrastructure and planned urban expansion. The Rs 500‑crore commitment for the Dibrugarh region underscores the state’s intent to operationalise the second capital concept with substantial investment.
