Patna: The Bihar Cabinet has approved ₹9,169 crore for the state’s 264 Urban Local Bodies (ULBs) under the 16th Finance Commission, along with a series of major decisions covering urban development, road infrastructure, education, agriculture and digital governance.
A total of 27 decisions were taken at the Cabinet meeting chaired by Chief Minister Samrat Choudhary on Wednesday.
₹9,169 Crore for 264 Urban Local Bodies
The approved ₹9,169 crore will be provided to Bihar’s urban local bodies during the financial years 2026-27 to 2030-31.
Urban Development and Housing Department Minister Nitish Mishra said the funds will be released as basic grants and performance grants. Around 90 per cent of the allocation will continue to follow population-based criteria, while 10 per cent will depend on performance.
Under the earlier 15th Finance Commission, 10 per cent of funds were allocated based on geographical area. The new performance-based component will reward urban bodies that perform better and improve their own resource mobilisation.
The Cabinet also approved incentives for expanding urban areas. A one-time grant of ₹2,000 per person will be provided when new areas are brought under ULBs, encouraging further urbanisation in the state.
Read Also: Bihar Launches Didi Ki Rasoi for 300 Students, Creating Jobs for JEEViKA Women
Special Focus on Waste and Water Management
The Cabinet decision also provides a dedicated infrastructure component of ₹5,000 crore, which can support major infrastructure needs, including wastewater management projects in Patna Municipal Corporation. Around 60 per cent of this component will come from the Central Government.
Of the overall ₹9,169 crore allocation, ULBs will have to spend 50 per cent on waste management or water management. They will have flexibility to use the remaining 50 per cent across 18 identified functional areas.
This funding structure is expected to give urban bodies greater resources while linking a part of the funding to performance and service delivery.
Mukhyamantri Samagra Shahari Vikas Yojana Extended
The Cabinet also approved the re-implementation of the Mukhyamantri Samagra Shahari Vikas Yojana up to 2030-31.
The scheme was launched in 2024 to support development projects in Assembly constituencies having urban local bodies. Projects are selected based on recommendations from members of the state legislature.
The scheme was initially approved for two years. However, several ongoing projects could not receive administrative approval after the scheme expired, particularly amid elections and the Model Code of Conduct.
The government has now decided to continue the scheme after receiving positive feedback on its implementation.
The scheme will have an annual allocation of ₹500 crore, while the District Operation Committee, headed by the Minister-in-Charge, will select projects.
Road User Fees Approved on Bridges and State Highways
In another major decision, the Cabinet approved an estimated ₹30.94 crore for consultancy services related to road user fee structures, collection and monitoring on state-owned roads, bridges and other structures.
The state plans to introduce road user fee collection in the first phase on:
- 47 state-owned bridges longer than 250 metres
- 55 State Highways
Before toll collection begins, traffic surveys and Origin-Destination surveys will be conducted to assess vehicle movement. Suitable locations for toll plazas will also be identified based on road design, number of lanes and traffic volume.
The government will also engage a System Integrator to install the required hardware and software for Electronic Toll Collection through FASTag.
The consultancy will also cover toll collection contracts, Toll-Operate-Transfer projects, project networking and bundling, and related activities.
Boost for Livestock and Dairy Development
The Cabinet approved the formation of the Bihar State Goat Farmers’ Cooperative Federation Limited and sanctioned ₹14.79 crore for 2026-27, 2027-28 and 2028-29.
It also approved ₹73.47 crore for setting up a heifer rearing centre under the Rashtriya Gokul Mission during 2026-27. Of this, ₹68.92 crore will be spent under the state scheme linked to Saat Nischay-3.
These measures are aimed at strengthening livestock-related activities and supporting the state’s rural economy.
Nehru Path Widening and Sitamarhi ROB
The Cabinet approved ₹39.80 crore for widening Nehru Path between Dakbungalow Chowk and Rukanpura in Patna.
The proposed widening covers around 7.20 km and will involve changes to existing drains, footpaths and other structures within the available Right of Way.
A revised administrative expenditure of ₹110.42 crore was also approved for the approach road of the Road Over Bridge project replacing Level Crossing No. 56 between Parsauni and Sitamarhi railway stations in Sitamarhi district.
The Bihar State Bridge Construction Corporation Limited is executing the ROB and approach road work.
E-Cabinet and Student Credit Card Scheme
To strengthen digital governance, the Cabinet approved ₹2.75 crore for implementing an e-Cabinet system in Bihar. The amount will be drawn from the Bihar Contingency Fund.
The Cabinet also extended the Bihar Student Credit Card Scheme for another five years, from 2026-27 to 2030-31.
Under the scheme, students can obtain education loans of up to ₹4 lakh through the Bihar State Education Finance Corporation.
Land for Industrial Development and State Ceremonies
The Cabinet approved the transfer of 700 acres of land at Mauja Malhipur under Barauni circle in Begusarai district to the Industries Department for establishing an industrial area. The inter-departmental transfer will take place free of cost.
It also approved observing the martyrdom day of Ramphal Mandal and Pandit Rajkumar Shukla every year on August 23 as state-sponsored ceremonies in Sitamarhi and West Champaran respectively.
With 27 decisions covering urban finance, infrastructure, education, livestock, industrial development and digital governance, the Cabinet meeting marked a broad policy push aimed at improving public services and strengthening development infrastructure across Bihar.
Read Also: Centre Approves NSD Campus in Bihar, State to Fund Half of Construction Cost
