The Bihar government on Thursday approved a 3 per cent increase in the dearness allowance (DA) for its employees and pensioners.

The decision was taken in a meeting of the state cabinet, chaired by chief minister Nitish Kumar.

This hike will increase the DA from 50 to 53 per cent, giving improved financial assistance to lakhs of regular employees and pensioners, the cabinet secretariat said.

The hike will be effective from July 1, 2024, it said.

The cabinet also approved a new scheme, called Mukhyamantri Grihsthal Kraya Yojna, under which the revenue and land reforms department will provide financial assistance of ₹1 lakh to each landless family for the purchase of three decimal land.

“This one-time financial assistance will be provided to the eligible landless family for the purchase of their own land in the state,” said the proposal approved by the cabinet.

The cabinet gave its approval for the maintenance and upgradation of rural roads after the expiry of the post-construction maintenance contract by contractors.

It also sanctioned ₹120.58 crore for acquiring 50.50 acres of land for the
development of tourist amenities and basic infrastructure near the Punaura Dham Janki Mandir in the Sitamarhi district.