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Home Bihar

Contractors Face Delays After Treasury Restricts Withdrawals Across Departments in Bihar

Order issued by Finance Department directs all state offices to pause non-essential bills, leaving contractors and departments facing payment delays ahead of Holi.

Aditi Raj by Aditi Raj
February 27, 2026
in Bihar
Reading Time: 1 min read
Treasury withdrawals curtailed as government restricts non-essential payments until March 10
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Patna: As the financial year 2025–26 approaches its close, the government of Bihar has imposed temporary restrictions on treasury withdrawals to reinforce fiscal discipline. The directive, issued by Finance Department Special Secretary Mukesh Kumar Lal, states that non-essential payments will remain suspended until March 10.

Under the order, only Establishment and Committed Expenditure will be processed during this period. This includes salaries of government employees, pension disbursements and honorariums for contractual staff. All other bills and withdrawals have been put on hold, effectively freezing discretionary spending by departments.

Officials said the decision was taken in response to the typical surge of bill submissions in the final weeks of the financial year, which can strain treasury systems and complicate budget management. The measure follows provisions of the Bihar Treasury Code 2011, intended to curb unnecessary expenditure and ensure accurate accounting before year-end closures. Authorities indicated that verification and clearance of pending essential bills will resume after March 10.

The restrictions have had a ripple effect across departments including education, health, power and infrastructure, with contractors reporting that bills worth billions of rupees remain pending. With Holi approaching, delayed payments have heightened concerns among contractors and workers, while officials have been instructed to strictly comply with the directive and prioritise only essential financial commitments.

Tags: ContractorsFiscal DisciplinegovernancePublic FinanceTreasury Control

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