PATNA, June 3 -- Panchayat institutions across the state are set to receive Rs.51,923 crore from the Centre over the next five years (2026-27 to 2030-31), following recommendations of the 16th Finance Commission, according to a senior officer of the panchayati raj department here. The Finance Commission, a constitutional body set up every five years to suggest how central taxes should be shared between the Union and states, also recommends grants to strengthen local self-governance. This latest allocation for rural local bodies in Bihar is nearly Rs.20,000 crore more than what was provided under the 15th Finance Commission and reflects a national push to empower villages after the 73rd Constitutional Amendment gave panchayats constitutional status. For a state like Bihar, where a large population still depends on agriculture and basic rural services, this funding is being seen as a game-changer. The money aims to improve everyday life in thousands of villages by strengthening local governance and infrastructure. Under the new formula, Gram Panchayats will get a bigger share - 80% of the total funds, up from 70% earlier - while funding for Panchayat Samitis and Zila Parishads will be slashed a bit. Instead of 15% allocation, they will now receive 10% of the total allocation each. Panchayati raj minister Deepak Prakash highlighted the performance-driven approach. "Basic funds will be given to all, but panchayats that do better in raising their own revenue will get additional money," he said. Well-performing Mukhiyas could receive up to 20 per cent extra funds as incentive....