19 Apr 2021


Chandigarh, March 4: The Punjab Cabinet led by Chief Minister Captain Amarinder Singh on Thursday approved several key recommendations of the 6th Punjab Finance Commission, including compensation against revenue losses on certain counts.


            The Commission had submitted 7 recommendations for 2021-22 to the Punjab Governor on January 29, 2021. While 6 have been approved by the Cabinet today, one relating to continuation of devolution of 4% own share of state taxes to Local Bodies for the year 2021-22 will be examined by a Group of Ministers (GoM), an official spokesperson said after the Cabinet meeting. The GoM shall comprise Finance Minister, Local Government Minister, Rural Development & Panchayats Minister and Water Supply & Sanitation Minister.


            Among the key recommendations accepted by the Cabinet are: continuation of compensatory payments in case of loss of revenue from abolition of octroi on power and liquor to local bodies for the year 2021-22; continuation of 16% share of excise duty on IMFL and 10% share on auction money from liquor vends to be devolved to the Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs).


            The Sixth State Finance Commission, was constituted by Punjab Government under section 3(1) of the Punjab Finance Commission for Panchayats and Municipalities Act, 1994 vide notification on July 3, 2018, under the chairmanship of former Chief Secretary KR Lakhanpal. It included VC Punjabi University Patiala Dr. BS Ghuman as Expert Member besides Financial Commissioner Rural Development & Panchayats and Principal Secretary Local Government as Ex-Officio Members. Former Principal Secretary Science Technology & Environment Dr. Roshan Sunkaria was appointed Member Secretary.

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