Enhanced Dearness Allowance for State Employees and Pensioners
As the festive season of Diwali and Chhath approaches, the Bihar Cabinet has approved a significant financial adjustment for government employees, pensioners, and family pensioners. The decision to increase dearness allowance (DA) by 3% brings the total to 58% from the current 55%, effective from July 1, 2025. This adjustment, announced by Cabinet Secretariat Department’s Additional Chief Secretary Arvind Kumar Chaudhary, aims to align with the Central Government’s DA revision for its own workforce. While the hike will cost the state exchequer an additional ₹917 crore, officials emphasized its importance in maintaining purchasing power amid inflationary pressures. The move is seen as a strategic gesture to bolster public morale ahead of the upcoming Assembly elections, which are set to be announced within weeks.
Scholarship Expansion and Institutional Development
The Cabinet’s agenda also included substantial educational reforms, with a focus on improving access to quality learning. A key decision was to double scholarships for school students in Classes 1 to 10, raising the stipend for Classes 1-4 to ₹1,200, Classes 5-6 to ₹2,400, and Classes 7-10 to ₹3,600. This initiative aims to reduce financial barriers for families and enhance academic outcomes. Additionally, the state plans to establish a dedicated ‘Bihar Film & Drama Institute’ to nurture local talent, addressing the current reliance on institutions like the National School of Drama in Delhi and FTII in Pune. The decision reflects a broader push to cultivate regional creativity and reduce migration of skilled professionals.
Infrastructure and Tourism Boost
Infrastructure development received attention as the Cabinet approved a major tourism project in Patna. The state government has granted a Letter of Award to Sarga Hotel Pvt. Ltd., Kolkata, to construct a five-star hotel at the Bankipore bus stand, covering 3.24 acres under a public-private partnership model. This project is expected to elevate tourist facilities and promote economic growth in the region. Similarly, the integrated development of the Gaya Ji temple premises has been entrusted to Ahmedabad-based HCP Design Planning and Management Pvt. Ltd., following the successful model of the Kashi Vishwanath Corridor in Varanasi. These initiatives underscore Bihar’s commitment to modernizing its infrastructure and enhancing visitor experiences.
Health and Education Funding Increases
Healthcare and education sectors received additional financial support to strengthen service delivery. The Cabinet approved a ₹99.21 crore allocation to increase the monthly honorarium of contractual Auxiliary Nurse Midwives (ANMs) from ₹11,500 to ₹15,000. This move aims to improve immunization drives in urban areas by attracting and retaining skilled healthcare professionals. Concurrently, annual scholarships under the Mukhyamantri Balak/Balika Chhatravriti Yojana were raised from ₹1,800 to ₹36,000 for general and minority categories. These funding boosts are expected to alleviate financial burdens on families and ensure better educational outcomes for students.
Political Context and Future Implications
The Cabinet’s decisions come at a critical juncture as the state prepares for Assembly elections. With only weeks remaining until the announcement of polls, the government has prioritized initiatives that highlight its commitment to public welfare and development. The DA hike, scholarship expansions, and infrastructure projects collectively aim to position Bihar as a state focused on progressive governance. Analysts suggest these measures are not only about immediate relief but also about crafting a narrative of growth and inclusivity. As the state gears up for elections, the success of these policies could significantly influence voter sentiment and political dynamics.
About the Author
