In a major decision, the Bihar Cabinet on Tuesday raised the Dearness Allowance of its employees and pensioners in the revised pay scale to 100 per cent from the previous rate of 90 per cent.
The new DA rate will be effective from January 1 this year.
"The move to provide dearness relief to state government employees is on the lines of the central government raising the DA to 100 per cent for its employees a few months ago," Principal Secretary (cabinet secretariat) Brajesh Mehrotra told reporters here.
"This will provide an additional financial burden of around Rs 1,400 crore on the state government," he said.
He said that the DA for employees and pensioners still in the unrevised pay scale, has been increased by 200 per cent.
In another decision, the cabinet decided to spend Rs 259 crore for manufacturing over 55,000 hand pumps and maintenance of those already installed under the 'Chief Minister Hand Pump Scheme' being implemented by the Public Health Engineering Department (PHED).
This will help provide potable water to a widespread section of population.
Under this scheme MLAs could now recommend installation of two to five hand pumps in wards and panchayats in their area, while MLCs could recommend 100 hand pumps each in the state.
The cabinet also decided to spend Rs 74.57 crore for putting in place 200 mini water supply schemes powered by solar energy in nine districts affected by presence of iron in water.
The state cabinet also decided to allot Rs 195 crore for providing various allowances to elected representatives of panchayats, panchayat samitis and district councils.
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