Punjab News: Punjab Chief Minister Bhagwant Singh Mann has stressed the need to economically strengthen urban and rural local bodies. He said that it is important for Panchayats and Municipalities to have adequate financial resources so that they can effectively complete civic amenities and development works at the local level.
The Chief Minister chaired a meeting with the newly constituted Seventh Punjab Finance Commission on Wednesday. During this, he discussed various issues related to the role of the Commission and the financial condition of local bodies. He said that the main objective of the Commission is to assess the economic condition of Panchayats and Municipalities and give practical suggestions to strengthen them.
Responsibility for determining share in taxes and fees
Chief Minister Bhagwant Mann said that the State Finance Commission is an important constitutional instrument for financial decentralization of Panchayats and Municipalities. The Commission makes recommendations regarding the distribution of funds received from taxes, fees, road taxes, tolls and other revenues between the state and local bodies.
He said that the Commission will also have to see how the available revenue should be distributed among different levels of Panchayats and Municipalities, so that the local institutions can get adequate resources to discharge their responsibilities.
Income and expenditure of local bodies will be assessed
The Chief Minister said that the responsibilities of Panchayats and urban local bodies are continuously increasing. Along with providing civic amenities, these institutions also play an important role in the development of local infrastructure. In such a situation, the system of allocation of resources should be transparent, equitable and sustainable in the long run.
He expressed hope that the Seventh Punjab Finance Commission would conduct a comprehensive study of the earning capacity, expenditure responsibilities and financial needs of the local bodies. On the basis of this, the Commission will give such recommendations so that the economic capacity of Panchayats and Municipalities can be increased and they can run their functioning in a better way.
Commission will suggest measures to improve financial situation
Bhagwant Mann said that the commission will also recommend necessary steps to improve the financial condition of local bodies. Along with this, the Commission will also be responsible for reducing non-productive revenue expenditure and suggesting measures for better utilization of available capital resources.
He said that it is also necessary to strengthen the administrative system and technical support, so that the local bodies can use the available resources effectively.
Former Additional Chief Secretary K. Shiv Prasad President
The Government of Punjab has constituted the Seventh Punjab Finance Commission under Section 3(1) of the 'Punjab Finance Commission for Panchayats and Municipalities Act, 1994'. Former Additional Chief Secretary of Punjab K. Shiv Prasad has been made the chairman of the commission.
Shaukat Rai has been made an expert member in the commission. Apart from this, Administrative Secretaries of Rural Development and Panchayat Department and Local Body Department will be ex-officio members. The Special Secretary of the Finance Department has been given the responsibility of ex-officio Member Secretary.
The tenure of the commission will start from 2026
The Chief Minister congratulated the Chairman and members of the Commission for their new responsibility. He said that the state government will provide necessary support and assistance to the commission for its work.
According to the government, the five-year tenure of the Seventh Punjab Finance Commission will start from April 1, 2026. The commission has to provide its report to the state government by 30 September 2027. In the report the Commission will also mention the basis for reaching its conclusions.
Apart from Additional Chief Secretary Alok Shekhar, senior officials of rural development, local bodies and other departments were also present in the meeting.
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