Patna: In a series of sweeping pre-election announcements, Bihar Chief Minister Nitish Kumar has unveiled substantial reforms and financial incentives for panchayat representatives across the state. The decisions, widely viewed as a strategic move ahead of the upcoming assembly elections, include a significant hike in allowances, expanded administrative powers, and improved welfare benefits.
Speaking at a gathering of panchayat, block and district council representatives during a ‘Samvad’ event, the Chief Minister laid out six major policy changes designed to strengthen the Panchayati Raj system and empower grassroots governance.
Salary Hike and Power Expansion
The monthly allowance for all panchayat representatives — including mukhiyas, deputy mukhiyas, ward members, sarpanches, and panchs — will be increased by 1.5 times. A mukhiya, for instance, who previously received ₹5,000 per month will now earn ₹12,500. The decision marks a significant shift in remuneration policy, particularly as rural representatives play an increasingly active role in local governance.
Additionally, the financial authority of gram panchayat heads under the MGNREGA scheme will be doubled. Previously authorised to approve projects worth up to ₹5 lakh, mukhiyas can now greenlight works valued at ₹10 lakh — a move aimed at accelerating rural employment and infrastructure development.
Infrastructure and Welfare Measures
Nitish Kumar also announced the approval of 1,069 new Panchayat Government Buildings across Bihar. Construction responsibilities will be handed directly to the respective gram panchayats to ensure timely completion before the elections later this year.
In a notable step towards the personal security of elected representatives, district officials have been instructed to process arms licence applications from panchayat leaders within a fixed timeline and as per existing regulations.
The state government has revised its compensation scheme for panchayat members, now providing a ₹5 lakh ex gratia on both accidental and natural deaths. Representatives will also become eligible for medical support under the Chief Minister’s Medical Assistance Fund in the event of serious illness.
Financial Autonomy for Local Bodies
To facilitate more efficient utilisation of funds allocated under the 15th Finance Commission and State Finance Commission, panchayati raj institutions will now be permitted to implement schemes worth up to ₹15 lakh departmentally — a move expected to expedite development works at the grassroots level.
