- Bihar Cabinet approves ₹51,923 crore grant for Panchayats.
- Funds for rural roads, drinking water, sanitation, infrastructure.
- Decision based on 16th Finance Commission recommendations.
State Bureau, Patna: CM Samrat Choudhary-led Bihar Cabinet on Wednesday approved 29 proposals for the state, including approval for the distribution, utilisation, implementation and expenditure of the basic and performance grant of Rs 51,923 crore received from the Government of India for the three-tier Panchayati Raj institutions.
The Bihar government has given this approval for the financial years 2026-27 to 2030-31 in the light of the recommendations of the 16th Finance Commission.
This decision is expected to give new impetus to the implementation of development schemes at the Gram Panchayat, Panchayat Samiti and Zila Parishad level.
After the meeting, Additional Chief Secretary Arvind Chaudhary said that this amount will be received from the Central Government during the next five financial years.
The government has also approved the framework for its distribution and utilisation, so that Panchayati Raj institutions at all levels can carry out development works in a planned manner.
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Major expenditure will be on rural roads, drinking water and sanitation
The Panchayati Raj department said that the grant will strengthen the development of infrastructure, sanitation, drinking water, roads, maintenance of community assets and other development works as per local needs in rural areas.
Additionally, Panchayati Raj Institutions performing better will also be given a performance grant, which will promote transparency, accountability and good governance.
The government believes that this amount being provided as per the recommendations of the 16th Finance Commission will make the three-tier Panchayati Raj institutions of the state financially stronger and will play an important role in the effective implementation of rural development schemes.
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24 approvals in June
In the last month's cabinet meeting, CM Samrat Choudhary's government had approved 24 proposals, including the clearance of approximately Rs 43 crore in outstanding payments to farmers associated with Sasamusa Sugar Works.
The decision will provide relief to sugarcane farmers and pave the way for restarting the sugar mill. Industrial development, urban infrastructure, education, technology and farmers' welfare were among the key sectors that saw major decisions.