23 September 2026 Punjab Khabarnama Bureau : Punjab Chief Minister Bhagwant Singh Mann has called for a stronger and more sustainable financial framework for the state’s urban and rural local bodies, stressing fiscal discipline, transparent resource distribution and stronger grassroots institutions.
Mann Chairs Seventh State Finance Commission Meeting
Mann made the remarks while chairing a meeting with the newly constituted Seventh Punjab State Finance Commission.
The commission has been tasked with recommending how taxes, duties, road tax, tolls and other state revenues should be distributed between the Punjab government and Panchayats and Municipalities. It will also suggest measures to improve the financial health of local bodies.
Focus on Fiscal Decentralisation
Mann described the State Finance Commission as an important constitutional mechanism for fiscal decentralisation.
He said Panchayati Raj institutions and municipalities need adequate financial resources to discharge their responsibilities effectively, particularly in providing essential civic services and developing local infrastructure.
Transparent and Equitable Resource Sharing
The Chief Minister stressed the need for a transparent, equitable and sustainable system of resource devolution.
The commission is expected to assess the revenue potential, expenditure responsibilities and financial requirements of local bodies before making recommendations on strengthening their fiscal capacity.
Reducing Unproductive Expenditure
Mann also called for measures to reduce unproductive revenue expenditure and improve the quality of administration and technical support.
The objective, according to the government, is to ensure that available capital resources are used more efficiently and that local institutions can provide services effectively.
Who Heads the 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, while Shoikat Roy has been appointed as an expert member. Senior officials from the Rural Development and Panchayats and Local Government departments are ex-officio members, with the Special Secretary Finance serving as ex-officio member secretary.
Report Due by September 2027
The commission is expected to submit its report by September 30, 2027.
Its recommendations will cover a five-year period beginning April 1, 2026, according to the state government.
Broader Financial Context
The commission’s work comes as Punjab’s local governments enter a new five-year financial cycle.
The 16th Finance Commission has recommended grants for Punjab’s urban and rural local bodies for 2026–31, including about ₹7,834 crore for urban local bodies and ₹8,486 crore for rural local bodies, according to a PRS analysis of the Punjab Budget.
Strengthening Grassroots Governance
The state government has said stronger finances are necessary for Panchayats and municipalities to meet growing responsibilities related to infrastructure and civic services.
The Finance Commission’s recommendations are therefore expected to focus on improving the flow and use of resources at the local level while maintaining financial accountability.