In a landmark move for peace and reconciliation in Assam, Finance Minister Nirmala Sitharaman on Sunday unveiled a groundbreaking proposal in the Union Budget 2026-27. The budget includes an unprecedented special development package of Rs 500 crore specifically allocated for the United Liberation Front of Assam (Ulfa). This initiative represents the most significant peace-building effort in the state's recent history.
Historic Context and Budgetary Allocation
The proposed financial package stems directly from the landmark tripartite peace accord signed with Ulfa in December 2023. This agreement signaled a historic shift from decades of insurgency to integration and marked a decisive turning point for the entire northeastern region of India. The ₹500 crore allocation is part of a broader package of seven special allocations totaling Rs 1,046 crore for various groups in the Northeast.
Comprehensive Development Package Details
The complete package includes substantial allocations for multiple autonomous councils and communities across the region:
- ₹156 crore for the Bodoland Territorial Council (BTC)
- ₹200 crore for the Karbi Anglong Autonomous Territorial Council (KAATC)
- ₹100 crore for the Dima Hasao Autonomous Territorial Council (DHATC)
- ₹70 crore for the Dimasa people
- ₹50 crore for the tribals of Tripura
- ₹70 crore for Adivasi groups
All these allocations will be implemented under the Ministry of Development of North Eastern Region (DoNER), ensuring coordinated development efforts across the region.
Implementation and Future Commitments
Ulfa general secretary Anup Chetia, in an exclusive conversation, hailed the Budget proposal as "a positive way forward" in implementing the peace accord signed two years ago. He revealed crucial details about the long-term plan: "This is the first instalment of a total package of ₹5,000 crore to be disbursed over five years. We have already submitted the projects for the fund to the state government."
Chetia emphasized the group's commitment to channeling the allocation into meaningful development initiatives that would benefit communities across Assam. The comprehensive peace agreement, signed on December 29, 2023, in the presence of Union Home Minister Amit Shah, involves the Government of India, the Government of Assam, and representatives of Ulfa.
Transformation of Assam's Security Landscape
The peace process has already yielded remarkable results in transforming Assam's security situation. More than 9,000 Ulfa cadres have surrendered their arms and joined the mainstream. Furthermore, the controversial Armed Forces Special Powers Act (AFSPA) has been lifted from 85 percent of Assam's territory, creating a more normal security environment across most of the state.
Remaining Challenges and Opposition Response
Despite these significant achievements, a small faction of the insurgent group continues to remain outside the peace process. Ulfa (Independent), led by Paresh Baruah, stands apart from the mainstream reconciliation efforts, representing an ongoing challenge for complete peace in the region.
The budget proposals have drawn mixed political reactions. West Bengal Chief Minister Mamata Banerjee criticized the central government's budgetary approach, calling it a "Humpty Dumpty" budget that offers "nothing for the common man" while specifically mentioning Bengal's perceived neglect in the allocation process.
Broader Budget Context and Public Response
The Ulfa development package announcement comes alongside other significant budget provisions that have captured public attention. Citizens are particularly focused on changes to income tax slabs for the financial year 2026-27, with many seeking clarity on what gets cheaper and what becomes costlier under the new budgetary provisions.
This comprehensive peace initiative represents a strategic investment in Assam's future, aiming to transform former conflict zones into development hubs through substantial financial commitment and coordinated implementation between central and state authorities.
