Patna, May 13 (IANS) In a major decision benefiting lakhs of state employees and pensioners, the Bihar government has approved a 2% increase in Dearness Allowance (DA), raising it from 58% to 60%.

The decision was taken during a cabinet meeting chaired by Chief Minister Samrat Choudhary, where a total of 18 agenda items were cleared.

The revised DA will be effective from January 1, 2026, and its financial impact will be visible from June.

Around 9 lakh government employees and pensioners will receive the enhanced allowance along with arrears for the previous four months.

Employees under the 6th Central Pay Commission will now receive DA at 262%, up from 257%.

Those under the 5th Central Pay Commission will see DA rise to 483%, up from 474%.

Approximately 9 lakh employees and 3.5 lakh pensioners across Bihar will benefit from this decision, including personnel from municipal bodies, district councils, and various boards and corporations.

Employees with a basic pay of Rs 27,000 will see an increase of about Rs 540.

Higher-income employees may get a hike of up to Rs 4,500, and pensioners will receive an additional Rs 200 to Rs 2,000.

The move is expected to put an additional burden of around Rs 1,000 crore on the state exchequer.

Officials indicated that the DA hike was necessitated by rising inflation. However, experts believe the move may not significantly boost market demand.

While government employees will benefit, those in the private and unorganised sectors may continue to feel the pressure of inflation.

In another major decision, an educational push has been approved with the establishment of the National Institute of Food Technology Entrepreneurship and Management (NIFTEM) in the Vaishali district.

100 acres of land will be transferred free of cost to the Union Ministry of Food Processing Industries.

The cabinet approved the Chief Minister’s Bihar Environment-Friendly Transport Employment Scheme, aimed at accelerating electric vehicle adoption. The state government is aiming 30% EV share in total vehicle sales by 2030.

The Bihar government will also give incentives via DBT for electric goods carriers, including three-wheelers, two-wheelers, and special incentives for women buying non-commercial four-wheelers.

The scheme is expected to generate employment while promoting sustainable mobility.

A forward-looking step, the Bihar Artificial Intelligence Mission aims to position the state in emerging technologies.

Under this programme, 7,000 students will be trained over 5 years.

Under industrial promotion initiatives, a dairy production unit will be set up at Bihta-Sikandarpur in Patna.

The dairy plant will produce milk, curd, butter, and related dairy items. It would generate 170 jobs.

–IANS

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