Bihar Cabinet Approves Unemployment and Housing Allowance Increases

Patna: In a significant move to support the unemployed and state employees, the Bihar cabinet, chaired by Chief Minister Nitish Kumar, has approved a series of new measures. During the meeting held on Friday, a total of 25 agendas were sanctioned, including the introduction of the Bihar Unemployment Allowance Rules-2024 under MNREGA.

As per the newly approved rules, unemployed individuals in Bihar will receive a daily allowance if they do not secure employment within 15 days of applying. This initiative is designed to provide financial support to those actively seeking work.

Additionally, Rs 774 crore has been allocated under the Akshar Aanchal Yojana to benefit the Mahadalit, Dalit, Minority, and Extremely Backward Classes. This funding aims to support 30,000 workers, including 10,000 Taleem Markaz workers and 20,000 Shikshak Sevak workers.

The cabinet also approved an increase in the housing allowance for state employees based on recommendations from the State Pay Commission. The adjustment sees housing allowances rise between 1 to 4 percent. Specifically, allowances in Y category cities like Patna have increased from 16 to 20 percent, in Z category cities like Bihar Sharif, Nawada, Bettiah, and Motihari from 7.5 to 10 percent, and in unclassified cities such as sub-divisions and small towns from 6 to 7.5 percent. In rural areas, the allowance has been increased from 4 to 5 percent.

Moreover, the Bihar government has decided to temporarily increase the contingency fund from Rs 350 crore to Rs 10,000 crore for the fiscal year 2024-25, effective until March 30, 2025.

In a previous cabinet meeting held on March 15, 108 agendas were approved. Notably, the cabinet provided relief to government employees and pensioners by increasing the Dearness Allowance (DA) by four percent to counter rising inflation. Additionally, the construction of a new airport in Rajgir and the renovation of Bhagalpur Airport were approved.

These decisions underscore the Bihar government’s commitment to enhancing the welfare of its citizens and addressing the needs of the state’s workforce.