Bhagwant Mann Calls For Stronger Financial Framework For Punjab’s Local Bodies

Last Updated:September 22, 2026, 11:21 PM IST

Mann called for a transparent &equitable resource-sharing mechanism, taking into account the growing role of local bodies in providing civic services and developing infrastructure.

Punjab Chief Minister Bhagwant Mann

Punjab Chief Minister Bhagwant Mann on Tuesday stressed the need to strengthen the financial framework of Panchayats and Municipalities, saying sustainable finances and effective fiscal institutions are essential for improving grassroots governance.

Mann made the remarks while chairing a meeting with members of the newly constituted Seventh Punjab Finance Commission. He said the panel would make recommendations on sharing taxes, duties, road tax and other revenues 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.

Describing the commission as a constitutional mechanism for fiscal decentralisation, Mann said it would help Panchayati Raj institutions and Municipalities build the financial capacity required to deliver their responsibilities.

“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.

Mann called for a transparent and equitable resource-sharing mechanism, taking into account the growing role of local bodies in providing civic services and developing infrastructure.

“The Commission also recommends measures to reduce unproductive revenue expenditure and steps to improve the quality of administration and technical support for efficient and effective use of capital resources,” he said.

The Seventh Punjab Finance Commission has been constituted under the Punjab Finance Commission for Panchayats and Municipalities Act, 1994. Former Punjab Additional Chief Secretary K. Siva Prasad is its chairman, while Shoikat Roy is the Expert Member. Senior officials from the Rural Development, Local Government and Finance departments are also part of the panel.

Mann assured the commission of the state government’s cooperation and said it will submit its report by September 30, 2027, covering the five-year period beginning April 1, 2026.

Quick Answers

Powered by

Ask News18

What is the primary role and objective of the newly constituted Seventh Punjab Finance Commission?

The Seventh Punjab Finance Commission has been constituted to examine the financial position of Panchayati Raj Institutions and Municipalities, recommending a framework for fiscal devolution, tax-sharing, and financial sustainability.

Who leads the Seventh Punjab Finance Commission and under what legislation was it formed?

The commission is chaired by former Punjab Additional Chief Secretary K. Siva Prasad, with Shoikat Roy serving as the expert member, and was formed under the Punjab Finance Commission for Panchayats and Municipalities Act, 1994.

When is the Seventh Punjab Finance Commission required to submit its official report?

Chief Minister Bhagwant Mann stated that the commission will submit its report by September 30, 2027, covering a five-year period beginning April 1, 2026.

Powered by

Ask News18

About the Author

News Desk

The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, …Read More

Read More