Bihar Cabinet approves allocation of ₹9169 crore for ULBs
ULBs to receive funds as basic grant & performance grant. Cabinet nod for collecting road user fees from vehicles passing over 47 State-owned bridges & 55 SHs.
On September 2, 2026, the Bihar Cabinet approved an allocation of ₹9,169 crore for all Urban Local Bodies (ULBs) in the state for a period of four years, starting from the financial years 2026-27 to 2030-31. The funds will be distributed as a basic grant and performance grant to the 264 urban local bodies of Bihar. Urban Development and Housing Department Minister Nitish Mishra revealed that the Government of India's 15th Finance Commission ended on March 31, 2026, and the State approved the allocation for the new 16th Finance Commission.
The allocation includes about 90% of funds based on population criteria and 10% allocated based on performance, which was previously allocated based on area. Additional changes include a provision for converting new areas into towns with a one-time grant of ₹2,000 per person and a Special Infrastructure Component of ₹5,000 crore for waste water management projects.
The ULBs will have to spend 50% of the allocated funds on waste management or water management, and they have autonomy to spend the remaining 50% across 18 identified functional departments. The cabinet also approved the expenditure of ₹30.94 for obtaining consultancy services for road user fee structures, collection, and monitoring, along with the observation of Ramphal Mandal and Pandit Rajkumar Shukla's martyrdom day as State-sponsored ceremonies in Sitamarhi and West Champaran, respectively.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
