Patna: In a major decision aimed at streamlining rural development efforts, Bihar’s three-tier Panchayati Raj institutions—Gram Panchayats, Panchayat Samitis and Zilla Parishads—will now be empowered to directly implement schemes up to Rs 15 lakh without going through the traditional tender process.
The announcement was made by Bihar Chief Secretary Amrit Lal Meena following a high-level meeting chaired by Chief Minister Nitish Kumar on June 12. The move comes in response to persistent demands by elected Panchayati Raj representatives, who have long argued that the existing tender system slows down implementation and increases costs due to contractor commissions.
Under the new policy, schemes funded by the 15th Finance Commission, the State Finance Commission, and the Rashtriya Gram Swaraj Abhiyan (RGSA) can now be executed departmentally by local bodies. The Chief Secretary said the decision is expected to enhance transparency, improve resource efficiency and ensure that projects are completed swiftly and effectively.
“The new rule has been implemented with immediate effect and all Zilla Parishads have been duly informed,” said Meena. “This step will empower local institutions and allow developmental works to reach the grassroots without unnecessary delays.”
Funds are currently being disbursed through PFMS (Public Financial Management System) and CFMS (Comprehensive Financial Management System), and the change will enable local bodies to bypass administrative bottlenecks caused by limited manpower and complex bidding processes.
The decision marks a significant shift in Bihar’s decentralised governance strategy, reinforcing the role of Panchayati Raj institutions as key drivers of grassroots development.
