Bihar Withdraws ₹3,662 Crore From Contingency Fund for Pensions, June 11

Bihar’s cabinet approved withdrawing ₹3,662 crore from the state contingency fund to pay social security pensions for three months. Chief Minister Samrat Choudhary transferred ₹1,100 crore directly to 94 lakh beneficiaries on June 10. Opposition leader Tejashwi Yadav questioned whether the state faces a financial emergency and criticized relying on emergency funds instead of regular budget provisions.

Cabinet Approves Emergency Pension Funding

The Bihar cabinet approved withdrawing ₹3,662 crore from the Bihar Contingency Fund to cover social security pension payments for May, June, and July 2026. Chief Minister Samrat Choudhary transferred ₹1,100 crore directly into beneficiary bank accounts through Direct Benefit Transfer on June 10. The transfer reached more than 94 lakh people across six social security pension schemes, including the Indira Gandhi National Old Age Pension Scheme, Widow Pension Scheme, and Disability Pension Scheme.

Opposition Raises Fiscal Concerns

Tejashwi Prasad Yadav, Leader of Opposition in Bihar assembly, alleged the state faces a deepening financial crisis. He questioned whether Bihar was on the brink of bankruptcy after the contingency fund withdrawal. Yadav claimed that for six months, employee salaries and pension payments faced delays due to an empty state treasury. He also alleged that contractors remained unpaid for over a year and that development projects approved in 2023-24 had not started.

Broader Government Service Delays

Yadav cited multiple service disruptions affecting citizens. Scholarship money disbursement has stalled, and the Student Credit Card Scheme faces standstill conditions. Power supply disruptions have increased across the state. The opposition leader accused the government of making announcements without proper fiscal planning and urged Chief Minister Choudhary to address public concerns over what he termed Bihar’s “pathetic financial situation.”

Pension Payment Commitment and Schedule

Chief Minister Choudhary announced that pension payments would be credited to beneficiary accounts on the 10th of every month going forward. The government increased monthly pension amounts from ₹400 to ₹1,100 under a decision made by former Chief Minister Nitish Kumar. Choudhary instructed officials of the Social Welfare Department to ensure future payments meet the scheduled deadline and urged eligible citizens aged 60 and above to apply for benefits.

Final Thoughts

Bihar’s ₹3,662 crore contingency fund withdrawal signals fiscal strain, with the opposition questioning whether regular budget provisions can sustain pension payments. The state’s delayed salaries, stalled projects, and service disruptions suggest deeper structural budget challenges ahead.

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