Led by Chief Minister Capt Amarinder Singh, the Punjab Cabinet on Thursday approved several key recommendations of the Sixth Punjab Finance Commission, including compensation against various fiscal deficits.
Disclosing this here today an official spokesperson said that the Commission on January 29, 2021 had submitted seven recommendations to the Governor of Punjab for the year 2021-22 and the Cabinet today approved six recommendations for the year 2021-22. A recommendation regarding the continuity of distribution of 4% share of the state government's tax nil to the state government would be scrutinized by the group of ministers.
The group of ministers will consist of Finance Minister, Local Government Minister, Rural Development and Panchayat Minister and Water Supply and Sanitation Minister.
Among the key recommendations approved by the Cabinet are to continue to pay compensation to local bodies for the fiscal year 2021-22 in respect of the fiscal deficit caused by the abolition of excise duty on electricity and liquor.) Includes 16 per cent of excise duty and 10 per cent of the contract bid amount for the development of Panchayati Raj Institutions and Urban Local Bodies.
The Sixth Provincial Finance Commission was set up by the Punjab Government under the leadership of former Chief Secretary KR Lakhanpal through a notification issued on 3 July 2018 under Section 3 (1) of the Punjab Finance Commission Panchayats and Municipalities Act, 1994. Former Vice Chancellor of Punjabi University Patiala Dr. BS Ghuman was included as an expert member in this committee. The Financial Commissioner nominated Rural Development and Panchayats and Principal Secretary Local Government as Ex-officio Member and former Principal Secretary Science Technology and Environment Dr. Roshan Sunkaria as Member Secretary.