Patna: The Central Government has released the second installment of untied grants under the 15th Finance Commission for Bihar’s Panchayati Raj institutions. Bihar has received a total of ₹803.79 crore, including pending amounts from the previous installment, aimed at accelerating development and welfare initiatives at the local level.
Funds to Boost Panchayati Raj Development
The released funds will strengthen three-tier Panchayati Raj institutions and accelerate welfare programs in Gram Panchayats, enabling faster implementation of locally prioritized schemes. Bihar received ₹802.40 crore in the second installment, along with an additional ₹1.39 crore from pending amounts of the first installment for three block committees and seven Gram Panchayats.
The total amount of ₹803.79 crore will support infrastructure, welfare programs, and other development activities at the Panchayat level.
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Enhancing Local Governance and IT Infrastructure
Under the National Gram Swaraj Abhiyan, Bihar had requested the release of remaining funds, including ₹83 crore, to strengthen District Panchayat Resource Centers. The funds will also support:
- Upgrading computer labs
- Implementing e-governance initiatives
- Ensuring smooth delivery of IT-based services at the Panchayat level
These steps are expected to enhance digital governance and improve efficiency in local administration.
Government Officials Highlight Benefits
Bihar’s Panchayati Raj Minister Deepak Prakash expressed gratitude for the release and noted that the funds will accelerate welfare activities in Gram Panchayats. He emphasized that Panchayats will now be able to implement schemes based on local needs more efficiently, ensuring faster development of rural areas.
The fund release follows a meeting on January 27, 2026, between Minister Prakash and Union Panchayati Raj Minister Rajiv Ranjan Lalan Singh, where Bihar requested financial assistance for Panchayat development and health sector initiatives.
Focus Areas of the Fund
- Development of three-tier Panchayati Raj institutions
- Welfare schemes at the Gram Panchayat level
- Implementation of IT-enabled services and e-governance
- Strengthening District Panchayat Resource Centers and computer labs
- Efficient execution of local development plans
The financial support is expected to significantly enhance the speed, transparency, and effectiveness of Panchayati Raj operations in Bihar.
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