24 October 2026
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Bihar CM Nitish Kumar Approves Rs 2 Lakh Annual Fund for Ward Members for Local Development

Ward members to receive development funds for local projects; proposal to be sent to central government for approval, strengthening decentralized governance in Bihar
Indian Masterminds Stories

Patna: In a historic decision for Bihar’s local governance, Chief Minister Nitish Kumar has announced that ward members of gram panchayats will soon receive an annual fund of Rs 2 lakh for development projects. The state government will send a proposal to the central government for approval, and once sanctioned, the fund will empower ward members to implement local development initiatives effectively.

Ward Members to Receive Development Funds

The announcement was made by Rural Development Minister Shravan Kumar in the Bihar Legislative Council while responding to a question from MLC Saurabh Kumar. Currently, under MNREGA, panchayat mukhiyas have the authority to spend up to Rs 10 lakh annually. The new proposal aims to extend financial powers to ward members, allowing them to select schemes and manage funds under MNREGA and other government programs.

Read also: Bihar CM Nitish Kumar Inspects 1,200-Bed IGIMS Hospital Project, Accelerates Healthcare and Industrial Development Plans

Addressing Past Concerns About Fund Distribution

During the council discussion, several members raised concerns about the current fund allocation system. Sachchidanand Rai noted that mukhiyas sometimes prioritize wards that bring them higher votes. Former minister Santosh Singh suggested granting ward members authority over MNREGA, 15th Finance Commission, and 6th State Finance Commission funds. Dinesh Singh emphasized that while ward members are elected representatives, they currently lack adequate powers.

Rural Development Minister Deepak Prakash urged ward members to actively participate in panchayat meetings and ensure consensus on development projects to promote balanced growth across all wards.

Transparency in Public Works and Signage

The council also discussed transparency in project signboards. Council chairman Avadhesh Narayan Singh instructed that the names of legislative council members should appear on project signboards before MLAs and that they must be invited to all relevant programs.

Rural Works Minister Ashok Chaudhary assured members that officials have been directed to correct errors on signboards, citing a complaint from Sanjay Kumar Singh regarding a signboard in the Morwa assembly area where the MLA’s name was overly prominent while the central state minister’s name appeared in smaller letters. Appropriate action against the responsible executive engineer has been promised.

Impact on Bihar’s Local Governance

Once implemented, the Rs 2 lakh annual fund for ward members will:

  • Empower local representatives to directly influence development projects in their wards
  • Ensure more equitable and transparent allocation of resources
  • Strengthen participation in gram panchayat decision-making
  • Promote balanced regional development across Bihar

This move marks a significant step in decentralized governance, giving ward members the tools to address local needs and enhance public welfare initiatives effectively.

Read also: Bihar CM Nitish Kumar Awards ₹50 Lakh to U-19 World Cup Star Vaibhav Suryavanshi for Record-Breaking 175-Run Innings


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