Bihar Delays Salary Payments Amid Cash Crunch, Disbursement Expected Soon

Brief By Newsbrief / 12:06 PM on 03 Apr 2026

The Bihar government has delayed salary and pension payments for nearly 10 lakh employees and pensioners due to a temporary cash flow crunch, though authorities have assured that disbursement will begin shortly. Officials expect payments to be credited between April 4 and 6, with priority given to current salaries and pensions.

The delay is largely attributed to the state awaiting Rs 8,500 crore in tax devolution from the Centre, expected around April 10. Until then, treasury operations have been deliberately slowed to manage liquidity and ensure funds are available for essential expenditures. While around Rs 10,000 crore had been arranged earlier, technical and financial management factors have impacted distribution timelines.

The government has temporarily halted other payments, including dues related to development works and certain education schemes. Experts view the move as a step toward maintaining fiscal discipline and stabilising cash flow, ensuring that critical obligations are met without risking financial imbalance.