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Bihar Cabinet Approves 5% Dearness Allowance Hike, Launches New Youth and Skills Department to Boost Jobs and Education

Bihar government announces 5% DA hike and launches independent Youth, Employment and Skills Department to boost jobs, higher education, and industrial growth.

Staff Reporter by Staff Reporter
December 9, 2025
in Bihar
Reading Time: 2 mins read
Bihar Cabinet Clears 43 Proposals, Sharpens Focus on Jobs and Investment; Bihar Bhavan to Come Up in Mumbai
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Patna: The newly formed Nitish Kumar cabinet approved 19 agenda items in its second meeting today, including a 5% increase in dearness allowance for Bihar government employees, effective July 1, 2025. The meeting also saw the approval of three new departments, a directorate, and a corporation aimed at expanding education, youth employment, and industrial growth in the state.

The three newly established departments are the Youth, Employment and Skills Department, Higher Education Department, and Civil Aviation Department. Alongside this, a Directorate of Small and Medium Enterprises and a Marketing Promotion Corporation will be created. The Youth, Employment and Skills Department, previously under the Labor Resources Department, will now operate independently, focusing on skilling and employment initiatives for Bihar’s youth.

“This department will accelerate skill development initiatives, which were envisioned under the central government’s 2014 policy but are yet to be fully implemented in Bihar,” said a government official. Plans include the potential establishment of a Skill University and new skill-related schemes.

For detailed information, click here for the official PDF of the Bihar Cabinet decisions

The Higher Education Department will oversee professional courses and research, separating higher education administration from the broader Education Department, which previously handled all levels of education in the state.

The cabinet also approved compassionate employment for the son of BSF soldier Mohammad Imtiaz, who was martyred during Operation Sindoor.

Industrial Development and Employment Focus

The state government outlined ambitious plans for industrial growth and youth employment. Under the earlier “Saat Nischay-2” scheme, five million youth were provided with government jobs between 2020 and 2025. The new government aims to create one crore jobs over the next five years (2025–30).

A high-level committee under the Chief Secretary will oversee initiatives including the promotion of a “New Age Economy” based on technology and service innovations, the reopening of closed sugar mills, and the establishment of a defense corridor and mega tech city. CM Nitish Kumar recently visited factories in the Hajipur Industrial Area, where he interacted with industrialists and observed production, including military footwear exported to Russia.

The government intends to make Bihar the technology hub of eastern India, leveraging its young population and industrial potential. Suggestions will be sought from entrepreneurs, economists, and experts to develop Bihar as a “global back-end hub” and a “global workplace.”

Manifesto Promises and Future Plans

The NDA’s 69-page manifesto outlined a vision to attract Rs 50 lakh crore of investment over five years, promote manufacturing across industries from semiconductors to aircraft machinery, and implement flood management initiatives in North Bihar. The manifesto also promises 10 million jobs, financial support for women, free education from KG to postgraduate level, metro services beyond Patna, and cultural projects including the renaming of Punaura Dham as Sitapuram.

Officials stated that the government has begun work on implementing these initiatives, emphasising the completion of every project it undertakes.

Tags: BiharBihar cabinetBihar GovernmentBihar NewsDearness AllowanceHigher EducationIndustrial GrowthNitish KumarSkill DevelopmentYouth Employment

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