The Bihar Cabinet on Wednesday (May 13, 2026) approved a 2% increase in Dearness Allowance (DA) for State government employees, pensioners and family pensioners getting revised salary or pension as per the 7th Pay Commission recommendations.

The DA has been hiked from 58% to 60%, effective January 01, 2026, Cabinet Secretariat Department Additional Chief Secretary Arvind Kumar Chaudhary told reporters in a post-Cabinet briefing. 

The Cabinet also hiked a 5% DA for employees, pensioners and family pensioners under the 6th Pay Commission, revising it from 257% to 262%, Mr. Chaudhary said, adding those under the 5th Pay Commission will now get a 9% DA hike, taking the allowance from 474% to 483%.

A total of 19 decisions were taken at the Cabinet meeting chaired by Chief Minister Samrat Choudhary.

In yet another important decision, the Cabinet approved the Finance Department’s proposal to raise total loans of ₹72,901.31 crore, including ₹64,141.28 crore through market borrowings for development and other purposes, Mr. Chaudhary said.

The Cabinet also gave its nod to transfer 100 acres in Vaishali district to the Union Food Processing Industries Ministry for setting up the National Institute of Food Technology, Entrepreneurship and Management (NIFTEM), Mr. Chaudhary said, adding the land has been transferred free of cost through the Infrastructure Development Authority (IDA), Patna. 

It also approved the Home Department’s proposal to create the post of Superintendent of Police (Rural) in five districts—East Champaran, Samastipur, Madhubani, Vaishali, and Siwan—citing their high sensitivity to both crime and communal tension.

New degree colleges

The government approved opening three new degree colleges in West Champaran and Munger as part of its Saat Nischay-3 (2025-30) programme “Unnat Shiksha-Ujjwal Bhavishya (Advanced Education-Bright Future), Mr. Chaudhary said. Under the programme, a degree college will be opened in each block of the State. It also sanctioned the creation of 132 teaching and non-teaching posts in all three degree colleges. 

Additionally, the government also transferred 110.12 acres to the Central Industrial Security Force (CISF) for setting up a recruitment training Centre in Kishanganj district of the Seemanchal region.

EV incentives

To promote a green and modern transportation system in the State, the Cabinet approved the Chief Minister Bihar Environment-Friendly Transport Employment Scheme and the Bihar Electric Vehicle (Amendment) Policy, 2026.

Under the policy, women purchasing electric four-wheelers will receive a subsidy of up to ₹1 lakh per vehicle, Transport Secretary Raj Kumar said. Women buying electric two-wheelers will get an incentive of ₹12,000, he said, adding the incentive amount will be applicable for the financial year 2026-27. 

Meanwhile, following the suggestion of Prime Minister Narendra Modi to minimise the use of vehicles to save diesel and petrol, the Bihar CM decided to reduce the number of vehicles in the Chief Minister’s cavalcade. He has also appealed to Ministers, Chairpersons and Members of the Corporation Board, all office-bearers, and public representatives to attend public programmes without additional vehicles.

He also appealed to the people of Bihar to use the metro, bus, auto, or other public transport, and all departments of the State government have been directed to ensure arrangements for all types of conferences or government meetings through video conferencing.

The Chief Minister has also asked to minimise the use of palm oil in canteens operating in government offices. He has advised promoting the culture of work from home in government and private offices. An appeal has been made to the people to organise ‘No Vehicle Day’ once a week.