Increase in inflation allowance for Bihar government employees and pensioners

Patan, 10 November: The Bihar Samrat Choudhary government has approved a 3% increase in the inflation allowance (DA) for government employees and pensioners, providing relief from inflation. Under the seventh central revised salary structure, employees and pensioners receiving salaries and pensions will now receive a 63% inflation allowance instead of 60%. This increase will take effect from 1 July 2026. The decision was approved on all 31 agenda items at the state cabinet meeting chaired by Chief Minister Samrat Choudhary on Tuesday.

According to the cabinet decision, under the fifth central salary structure, the inflation allowance for salary and pension recipients was increased from 483% to 497%, and under the sixth central salary structure, the allowance for beneficiaries was increased from 262% to 269%. This increase will also take effect from 1 July 2026. The decision will benefit government employees, pensioners, and family pension recipients under various salary structures in the state.

The cabinet also approved the launch of the "Bihar Ki Beti Start‑Up Challenge" scheme to connect female students in higher education institutions with self‑employment and innovative activities. Under this scheme, up to 2,100 students will benefit. The scheme, which will be implemented for four years from FY 2026-27 to 2029-30, will cost 88.20 crore rupees. Additionally, an administrative approval of 126 crore rupees was granted for the "Chief Minister Balika PhD Fellowship Scheme" to increase participation of students in higher education and research activities.

To promote artificial intelligence, technology, skill development, and innovative activities in the state, 190.32 crore rupees was approved for the Global Finance and Technology Network (GFTN), Singapore selection, and the "Arya Bhatt Darshtee" project implementation. This project is considered an important step toward strengthening the AI ecosystem in the state.

In the development of basic infrastructure, the cabinet gave a third administrative approval for the revised estimate of 4,572.53 crore rupees for the under‑construction four‑lane bridge and connecting road from Baksar to Tajpur on the Ganga River. The bridge length is 5.52 km and the connecting road length is 45.40 km. The state government also approved the provision of a revised amount of 1,834.305 crore rupees to complete the project.

For the implementation of the Pradhan Mantri Awas Yojana (Rural) in the rural development sector, a total of 1,399.6028 crore rupees was approved to be pre‑provided from the Bihar Contingency Fund for FY 2026-27. This includes 450.1554 crore rupees for the central share and 949.4474 crore rupees for the state share.

To strengthen the disaster management system, the establishment of the State Disaster Response Fund (SDRF) and State Disaster Mitigation Fund (SDMF) and their administrative procedures were approved from FY 2026-27 to 2030-31 based on the recommendations of the 16th Financial Commission.

In the water resources sector, 53.59 crore rupees was approved for the restoration of the Adirasthan irrigation project, expansion of the Mahamda branch canal, and construction of a barrage on the Bharat branch canal. Additionally, a revised estimate of 254.57 crore rupees was approved for flood control and drainage works in the Mokama Tal area. The cabinet also approved the Bihar River Maintenance Policy 2026.

Approval has been granted to establish a new Industrial Training Institute (ITI) in the Madhubani district of Bhopal to connect youth with employment. Starting from the financial year 2027-28, training will commence in six trades at this institute, with annual expenses of 2.46 crore rupees approved. Additionally, 117.48 crore rupees have been sanctioned to set up modern training centers (CIIIT) in the government ITIs of Patna, Munger, Rohitash, Purnia, and Madhubani with the cooperation of Tata Technologies Limited.

Under Urban Development, 44.52 crore rupees have been approved for acquiring 9 acres 73 decimals of land and other expenses for constructing a bus stand in Hajipur. It has also been decided to provide the benefits of the revised Guaranteed Financial Development Scheme (MACP) to permanent employees of the state's municipal bodies.

The cabinet has also approved a scheme of 8.85 crore rupees for installing 159 kiosks in 59 prisons to improve inmates' phone communication facilities and for their five-year operation. This work will be carried out through BSNL under the OPEX model.

Other major decisions include approval of the Bihar Internal Water Vessel Regulation 2026, Bihar Bhon Sub-ordinances 2026, and the Aiyush Medical Service Cadre Regulation 2026 concerning appointments and service conditions. The Department of Health has also approved the Bihar Drug Control Cadre (Amendment) Regulation 2026.

To promote eco-tourism in the state, a fundamental approval has been given to run the previously sanctioned 11 projects under the Public-Private Partnership (PPP) model. Additionally, three proposals prepared for the overall development of eco-tourism have been decided to be implemented under the same model.

The cabinet has also approved various developmental, administrative, and financial proposals apart from the Ganga Bridge connecting Bhartiya Pur and Taj Pur. After the meeting, the Cabinet Secretariat's Additional Chief Secretary Arund K. Choudhary presented the details of the decisions at a press conference.