Assam Cabinet Approves DA Hike for Employees and Greenlights Dibrugarh Second Capital Complex

The Assam cabinet, following a significant expansion, has announced a two-percentage-point increase in dearness allowance alongside a major infrastructure boost for Dibrugarh.

The Assam cabinet, meeting for the first time following its recent expansion, has moved to bolster the state’s fiscal relief measures. CM Sarma announced on Friday that the government will increase the Dearness Allowance (DA) for state government employees from 58% to 60%. This decision arrives as the state administration integrates 12 newly sworn-in ministers—11 from the Bharatiya Janata Party (BJP) and one from the Asom Gana Parishad (AGP)—into its fold.

Strategic Development for Dibrugarh

Beyond the salary adjustments, the cabinet has set its sights on decentralizing administrative infrastructure. A new second capital complex is slated for development in the Dibrugarh district. Spanning a land area of 20 square kilometers, the project is backed by a budgetary commitment of ₹500 crore, to be disbursed over the next five years. To ensure efficient governance of this initiative, the local MLA for Dibrugarh will be appointed as the chairman of the Dibrugarh Second Capital Complex Development Authority, holding a designated cabinet rank.

Enhancing Local Governance Funding

The cabinet also addressed long-standing requests regarding the MLA area development fund. Recognizing that these funds had remained stagnant since 2016, the government confirmed an increase from ₹1 crore to ₹1.5 crore for the current financial year, with a further rise to ₹2 crore scheduled for the next year. CM Sarma noted that this allocation includes a flexible 10% provision, allowing legislators to address urgent local needs, such as school infrastructure improvements or the procurement of emergency medical equipment like ambulances.

Broader Context and Next Steps

While the Assam government prioritizes these regional developments, the national landscape has seen similar fiscal adjustments. Recent reports from outlets like Bhaskar indicate that the Union Cabinet has also approved a two-percentage-point hike in DA for central government employees and pensioners, aligning state-level efforts with broader economic trends.

As the Assam cabinet prepares for the upcoming budget session of the Assembly, scheduled to commence on July 6, the administration faces the task of settling internal logistics. CM Sarma indicated that the formal allocation of portfolios for the newly inducted ministers is expected to be finalized within the week, marking a period of administrative transition for the state.