Guwahati: The Assam Cabinet has approved a two percent hike in Dearness Allowance (DA) and Dearness Relief (DR) for government employees and pensioners in a series of pivotal decisions, including an increase in the Dearness Allowance for government employees by two percentage points, a similar rise for pensioners, and an increase of two percentage points in the Assam Revenue Tax
This was announced at the first meeting of the new Cabinet after Chief Minister Himanta Biswa Sarma expanded his ministry on 5th June. The DA and DR rates will be increased from 58 per cent to 60 per cent, which would benefit over eight lakh serving employees, pensioners, pensioners of families, extraordinary pensioners and compassionate family pensioners across the state.
The Cabinet also allowed a staged-upgrading of the MLA Local Area Development (MLALAD) Fund. The revised plan proposes to double the annual fund from Rs1 crore to Rs1.5 crore starting from 2026-27, and to Rs2 crore from 2027-28 per legislator.
In addition, the MLALAD guidelines will be amended to enable MLAs to spend up to 10 per cent of their allocated funds on the procurement and distribution of the eligible community, educational, cultural, sports, disability-support equipment in their constituencies.
The approval of Assam's second State Capital Region in Dibrugarh for a major urban development initiative has also been given. The proposed area will be under the Second State Capital Region Development Authority, Dibrugarh (SCRDA-D) with a radius of 20 km from Dibrugarh Capital Complex.
The authority will develop regional and sectoral plans for growth, as well as define growth corridors and inform future development in the region connected to the second capital region. To support the initiative this regard, the state government will allocate Rs500 crore in various infrastructure projects in the budgets of relevant departments.
The Cabinet further approved amendments to the Assam Secondary Education (Provincialised Schools) Service Rules, 2026, creating a structured mechanism for the promotion of serving Grade IV employees to Grade III posts in provincialised secondary schools.