Punjab Newsline | Chandigarh
Punjab Chief Minister Bhagwant Singh Mann on Tuesday stressed the need for a stronger financial framework for urban and rural local bodies, emphasizing transparent fiscal decentralisation and sustainable resource allocation to strengthen grassroots governance across the state.
Chairing a meeting with the newly constituted Seventh Punjab Finance Commission, the Chief Minister said the Commission has been established to recommend the distribution of taxes, duties, road tax and other revenues between the state government and Panchayats and Municipalities. The body will also suggest measures to improve the fiscal health and financial sustainability of local governments.
Describing the Commission as a key constitutional mechanism for fiscal decentralisation, Mann said it plays a vital role in ensuring that Panchayati Raj Institutions and Municipalities have adequate financial resources to effectively discharge their responsibilities under the 73rd Constitutional Amendment.
Welcoming the Chairman and members of the Commission, the Chief Minister said the panel has the important responsibility of assessing the financial position of local bodies and recommending a framework to strengthen fiscal devolution.
He underlined the need for a transparent, equitable and sustainable system of resource distribution in view of the growing responsibilities of Panchayats and Urban Local Bodies in providing civic services and developing local infrastructure.
Mann expressed confidence that the Commission would conduct a comprehensive assessment of the revenue potential, expenditure obligations and financial requirements of local bodies and make practical, forward-looking recommendations to enhance their fiscal capacity.
The Chief Minister noted that the Commission is mandated to recommend the distribution of the net proceeds of taxes, duties, tolls and fees levied by the state government between the state and local bodies. It will also suggest the allocation of these resources among Panchayats and Municipalities at various levels.
He further said the Commission would recommend measures to improve the financial position of local bodies, reduce unproductive expenditure, strengthen administrative efficiency and enhance technical support for the effective utilisation of capital resources.
The Seventh Punjab Finance Commission has been constituted under Section 3(1) of the Punjab Finance Commission for Panchayats and Municipalities Act, 1994. Former Additional Chief Secretary of Punjab K. Siva Prasad has been appointed Chairman of the Commission. Shoikat Roy will serve as Expert Member, while the Administrative Secretaries of the Rural Development & Panchayats Department and the Local Government Department will serve as Ex-officio Members. The Special Secretary Finance will function as the Ex-officio Member Secretary.
Extending his best wishes to the newly appointed Chairman and members, Mann assured full support and cooperation from the state government in carrying out the Commission’s mandate.
Chief Minister said the Commission will submit its report by September 30, 2027, covering a five-year period beginning April 1, 2026. He added that the panel would clearly indicate the basis of its findings and recommendations in the larger public interest.
Additional Chief Secretary Alok Shekhar, Secretary Rural Development, Secretary Local Government and other senior officials were also present at the meeting.
