Bihar has received ₹803.79 crore from the Central Government as part of the second installment of untied grants under the 15th Finance Commission, aimed at strengthening Panchayati Raj institutions and accelerating rural development initiatives across the state.
According to officials, the amount includes ₹802.40 crore released in the second installment along with ₹1.39 crore from pending amounts of the first installment for three block committees and seven Gram Panchayats. The funds are intended to support infrastructure creation, welfare programmes, and locally prioritised development works at the Panchayat level.
The financial assistance is expected to reinforce the functioning of the three-tier Panchayati Raj system and enable faster implementation of schemes tailored to local needs. The state had also sought support under the National Gram Swaraj Abhiyan to strengthen District Panchayat Resource Centres and expand digital infrastructure.
Officials said the funds will be used for upgrading computer labs, promoting e-governance initiatives, and improving the delivery of IT-based services in rural areas, thereby enhancing transparency and administrative efficiency.
Bihar’s Panchayati Raj Minister Deepak Prakash welcomed the release, noting that the allocation would help Gram Panchayats implement development and welfare activities more effectively. The fund release follows a meeting held on January 27, 2026, between state representatives and Union Panchayati Raj Minister Rajiv Ranjan Lalan Singh, where Bihar sought additional support for Panchayat development and related initiatives.
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The latest grant is expected to accelerate grassroots development while strengthening local governance systems through better planning, digital tools, and timely execution of projects.
