Bihar Cabinet Approves ₹1,400 Crore for PM Awas Yojana-Gramin Housing Push

The news

The Bihar Cabinet on Tuesday approved an advance of ₹1,399.60 crore from the Bihar Contingency Fund to accelerate construction of houses sanctioned under the Pradhan Mantri Awas Yojana-Gramin (PMAY-G) in rural areas. The decision, taken at a meeting chaired by Chief Minister Samrat Choudhary, is intended to provide pucca houses to homeless families in the state's villages.

Of the total amount, the central share is ₹450.16 crore and the state share is ₹949.45 crore, Cabinet Department Additional Chief Secretary Arvind Choudhary said after the meeting. The funds will be used to speed up construction of approved houses under the centrally sponsored scheme, which is implemented by the Rural Development Department. The Cabinet cleared 32 proposals in total during the meeting.

What is the Bihar Contingency Fund?

The Bihar Contingency Fund is established under Article 267(2) of the Constitution of India, which empowers state legislatures to create such a fund. It is held at the disposal of the Governor to meet unforeseen expenditure pending authorisation by the state legislature. The fund operates as an imprest, meaning the amount withdrawn must be recouped after the legislature sanctions the expenditure through a supplementary demand for grants. This mechanism allows the state government to make urgent payments without waiting for a full budget approval cycle.

What is PMAY-G and how is it funded?

Pradhan Mantri Awas Yojana-Gramin is a centrally sponsored scheme under the Ministry of Rural Development that aims to provide pucca houses with basic amenities to houseless families and those living in kutcha houses in rural areas. For plain states like Bihar, the cost is shared between the centre and the state in a 60:40 ratio. The Bihar Contingency Fund, created under Article 267 of the Constitution, is used to meet unforeseen expenditure pending legislative authorisation.

What does the fund release mean for implementation?

The ₹1,400 crore injection is expected to directly accelerate construction of sanctioned houses, reducing the time lag between fund release and project completion. The state share being higher than the central share indicates Bihar's proactive fiscal commitment. The use of the Contingency Fund rather than waiting for budget allocation shows urgency. This will improve rural housing indicators, boost rural construction employment, and enhance living standards for the poorest, a key welfare metric.