Guwahati, June 5 (AHN) Assam Chief Minister Himanta Biswa Sarma on Friday announced a substantial increase in the MLA Area Development Fund and said the state government would convene the Budget Session of the Assembly in July to ensure uninterrupted implementation of welfare and development schemes.

Addressing reporters after a Cabinet meeting, Chief Minister Sarma said the government had decided to raise the MLA Area Development Fund from the existing Rs 1 crore to Rs 1.5 crore for the current financial year.

The allocation will be further enhanced to Rs 2 crore annually from the next financial year.

The Chief Minister noted that the fund had remained unchanged since 2016 and required revision to meet rising developmental needs in Assembly constituencies.

"The MLA Area Development Fund has remained at Rs 1 crore since 2016. We have now decided to increase it to Rs 1.5 crore for this year and from April next year it will be raised to Rs 2 crore," Sarma said.

He explained that the allocation for the current year had been fixed at Rs 1.5 crore because nearly half of the financial year had already elapsed.

Sarma said 90 per cent of the fund would continue to be utilised for infrastructure development works, while up to 10 per cent could now be spent on the purchase of essential items and equipment for public welfare.

The Chief Minister cited examples such as providing benches and furniture to schools, support to namghars, wheelchairs for persons with disabilities, laptops for deserving students, and even ambulances or other community-use equipment.

"Earlier, the fund was largely restricted to infrastructure projects. We have now allowed a portion of it to be used for important public utility items that directly benefit citizens," he said.

The Cabinet also decided to convene the Assam Legislative Assembly's Budget Session from July 6.

Sarma said the session would enable the government to pass a full-fledged budget and restore regular financial allocations for various schemes from August 1.

He clarified that some developmental programmes had been operating under limited financial provisions because the state had been functioning through a Vote-on-Account arrangement following the Assembly elections.

Appealing to the media to avoid speculation, Sarma said no government scheme had been discontinued and assured that all welfare and development programmes would continue normally after the budget was passed.

"From August 1, people will receive the benefits of all government schemes in a regular manner," he added.