The commission will examine the distribution of the net proceeds of taxes, duties, tolls and fees that can be shared between the state and local bodies. It will also recommend how the respective shares of Panchayats and municipalities should be allocated among different levels of local government.
Mann said the exercise should go beyond determining the distribution of resources and include a comprehensive assessment of the revenue-raising capacity, expenditure commitments and financial requirements of local institutions.
He called upon the commission to develop practical and forward-looking recommendations that can improve the financial health of local bodies and enable them to discharge their responsibilities more effectively.
An important part of the commission’s mandate will be to suggest measures for improving the financial position of Panchayats and municipalities. It will also examine ways to contain unproductive revenue expenditure and improve administrative and technical support so that capital resources are utilised efficiently.
The Chief Minister stressed that a disciplined fiscal approach at the state level, coupled with stronger and durable fiscal institutions, would be necessary to ensure the long-term financial sustainability of local governments.
The Seventh Punjab Finance Commission has been constituted under Section 3(1) of the Punjab Finance Commission for Panchayats and Municipalities Act, 1994. Former Punjab Additional Chief Secretary K. Siva Prasad has been appointed its Chairman.
Shoikat Roy has been appointed Expert Member, while the Administrative Secretaries of the Rural Development and Panchayats Department and Local Government Department are ex-officio members. The Special Secretary, Finance, has been designated as the ex-officio Member Secretary.
The commission’s responsibilities are significant because Panchayats and urban local bodies are responsible for a wide range of services and development activities at the local level. Their ability to raise revenue and access predictable financial resources directly affects their capacity to maintain infrastructure and deliver essential public services.
The Chief Minister also highlighted the wider importance of the 73rd Constitutional Amendment, under which Panchayati Raj institutions were given a constitutionally recognised role in grassroots governance. Financial devolution is an important component of enabling these institutions to perform the functions entrusted to them.
Mann assured the commission of the state government’s full cooperation and support in carrying out its mandate. He also asked it to ensure that its recommendations are based on a clear assessment of the financial realities and responsibilities of local governments.
The Seventh Punjab Finance Commission has been given until September 30, 2027, to submit its report. Its recommendations will cover a five-year period beginning April 1, 2026.
The commission has also been asked to clearly explain the basis for its findings and recommendations, an approach intended to bring greater transparency to the process of determining the financial relationship between the state government and local bodies.
Additional Chief Secretary Alok Shekhar, along with senior officials from the Rural Development and Panchayats, Local Government and Finance departments, attended the meeting.
The exercise could have significant implications for the financial architecture of grassroots governance in Punjab, as the commission’s recommendations will help shape the distribution of resources and the measures required to strengthen the fiscal capacity of Panchayats and municipalities over the coming five-year period.<\/p>\n\n\n\n
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CHANDIGARH : Punjab Chief Minister Bhagwant Singh Mann has called for a stronger and more sustainable financial framework for Panchayats and urban local bodies, stressing that financially empowered local institutions are essential for effective grassroots governance and delivery of civic services. Mann made the remarks while chairing a meeting with members of the newly constituted […]<\/p>\n","protected":false},"author":2,"featured_media":12334,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","footnotes":""},"categories":[24,22],"tags":[],"class_list":{"0":"post-12335","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-politics","8":"category-punjab-2"},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t