Spotlight
oi-Oneindia Staff
Punjab Chief Minister Bhagwant Singh Mann on Tuesday called for a stronger and more sustainable financial framework for the state’s rural and urban local bodies. He said financially strong Panchayats and Municipalities are essential for effective grassroots governance and better delivery of civic services.
Punjab CM Bhagwant Singh Mann emphasized the need for a stronger financial framework for local bodies to the Seventh Punjab Finance Commission, highlighting tax distribution and fiscal health, with the Commission’s report due by September 30, 2027.
Mann made the remarks while chairing a meeting with the newly constituted Seventh Punjab Finance Commission in Chandigarh.
Mann Stresses Financial Strength Of Local Bodies
The Chief Minister said the Commission has an important role in deciding how taxes, duties, tolls, fees and road tax revenues should be distributed between the state government and local bodies.
“The Commission has been constituted to make specific recommendations for distribution of taxes, duties, road tax and others amongst the Panchayats/Municipalities and the state, besides making further recommendations for improving the fiscal health of these civic bodies,” Mann said.
He described the State Finance Commission as a constitutional mechanism for promoting fiscal decentralisation to Panchayati Raj institutions and Municipalities.
“The State Finance Commission has an important responsibility to examine the financial position of Panchayati Raj Institutions and Municipalities and recommend a framework for strengthening fiscal devolution and financial sustainability of local governments,” he said.
Focus On Revenue And Better Resource Use
Mann said the growing responsibilities of local bodies require a transparent, equitable and sustainable system for sharing resources.
“I hope that the Commission will undertake a comprehensive assessment of the revenue potential, expenditure responsibilities and financial requirements of local bodies, and make practical and forward-looking recommendations to strengthen their fiscal capacity and enable them to discharge their functions effectively,” he said.
He also highlighted the need to reduce unproductive revenue expenditure and improve administrative and technical support so that capital resources are used efficiently.
Seventh Punjab Finance Commission
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 is the Chairman of the Commission. Shoikat Roy has been appointed as Expert Member. The Administrative Secretaries of Rural Development & Panchayats and Local Government are Ex-officio Members, while the Special Secretary Finance is the Ex-officio Member Secretary.
“The state government will extend fulsome support and cooperation to the Commission for this important task,” Mann said.
Commission To Submit Report By September 2027
The Commission is required to submit its report by September 30, 2027. The report will cover a five-year period beginning April 1, 2026.
“The Commission will make its report available by September 30, 2027, covering a period of five years commencing on April 1, 2026. In the larger public interests, the Commission shall indicate the basis on which it has arrived at its findings,” Mann said.
Additional Chief Secretary Alok Shekhar, the Secretary Rural Development, the Secretary Local Government and other officials were present at the meeting.
