Bihar Cabinet approves allocation of ₹9169 crore for ULBs
The Bihar Cabinet has approved a ₹9,169 crore allocation for urban local bodies over the next five years under the 16th Finance Commission. The funding model shifts focus toward performance-based criteria and includes new incentives for urbanization and waste management.
Why it matters
This policy shift significantly impacts urban infrastructure development and municipal governance in Bihar, setting a new precedent for performance-linked funding in Indian states.
The Bihar Cabinet on Wednesday (September 2, 2026) gave its nod for allocation of ₹9,169 crore for all the Urban Local Bodies (ULBs) of the State for a period of four years in the light of 16th Finance Commission.
The ULBs will receive the amount as a basic grant and performance grant in the State for the financial years 2026-27 to 2030-31.
Talking to reporters after the cabinet meeting, Urban Development and Housing Department Minister Nitish Mishra said that the term of the Government of India’s 15th Finance Commission ended on March 31, 2026. The State cabinet today approved the allocation of funds for all urban local bodies to be distributed under the 16th Finance Commission, he added.
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