The Union Budget for 2026–27 has set aside Rs 500 crore as a special package for factions of the United Liberation Front of Asom (ULFA), with the funds aimed primarily at the rehabilitation of surrendered cadres and their reintegration into mainstream society. The allocation has been made under the Ministry of Development of Northeastern Region (DoNER), according to the budget documents presented in Parliament.
The funding follows the Memorandum of Settlement signed on December 29, 2023, between the Centre, the Assam government and the pro-talks faction of ULFA led by Arabinda Rajkhowa, in the presence of Union Home Minister Amit Shah. The peace accord marked a major step toward resolving Assam’s long-running insurgency, with a focus on rehabilitation, economic support and long-term stability.
In the 2026–27 Budget, the DoNER Ministry has received a total allocation of Rs 6,812.3 crore, marking a substantial increase from the revised estimate of Rs 4,479.2 crore in the previous financial year. Significant portions of this funding have been earmarked for infrastructure development and regional growth initiatives, including the Northeast Special Infrastructure Development Scheme, the Prime Minister’s Development Initiative for Northeast Region (PM-DevINE), and various programmed under the Northeast Council.
Alongside the ULFA rehabilitation package, the Budget has also announced Assam-specific allocations, including Rs 200 crore as a special package for Karbi Anglong, Rs 156 crore for the Bodoland Territorial Council, and Rs 70 crore each for special development packages aimed at Adivasi groups and the Dimasa community. These enhanced allocations underline the Centre’s continued focus on peacebuilding, the rehabilitation of former insurgents and accelerated development across the Northeastern region, particularly in areas affected by ethnic conflict and insurgency.