GoM to examine proposal on devolution of State tax share to local bodies

| | Chandigarh
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GoM to examine proposal on devolution of State tax share to local bodies

Friday, 05 March 2021 | PNS | Chandigarh

The Cabinet on Thursday approved several key recommendations of the sixth Punjab Finance Commission, including compensation against revenue losses on certain counts. The Commission had submitted seven recommendations for 2021-22 to the Punjab Governor on January 29, 2021, of which six have been approved by the Cabinet on Thursday. The remaining one, relating to the continuation of devolution of four percent own share of state taxes to Local Bodies for the year 2021-22, will be examined by a Group of Ministers (GoM).

The GoM will comprise the State Finance Minister Manpret Badal, Local Government Minister Brahm MOhindra, Rural Development and Panchayats Minister Tripat Rajinder Singh Bajwa, and Water Supply and Sanitation Minister Razia Sultana.

Among the key recommendations accepted by the Cabinet include 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 percent share of excise duty on IMFL and 10 percent 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 Punjabi University Patiala Vice-Chancellor Dr BS Ghuman as expert member.

PUNJAB TO RESTRUCTURE 4 MORE DEPTS, INCLUDING PPCB

Carrying forward the State Government’s thrust on augmenting efficiencies through rationalisation, the Cabinet approved restructuring of four more departments, including the Punjab Pollution Control Board (PPCB), to create more employment opportunities in place of archaic, non-essential, and long-vacant posts.

Besides PPCB, the Departments that will be restructured in this phase are Governance Reforms, Environment and Climate Change, and Employment Generation, Skill Development and Training, said an official spokesperson after the virtual Cabinet meeting, chaired by Chief Minister Capt Amarinder Singh.

The restructuring of the Governance Reforms Department would lead to creation of 56 new posts while doing away with 75 obsolete ones. Spokesperson said that the new structure would support the Department’s larger reforms agenda for significant reduction in the time taken for provision of citizen-centric services, and make the government more accountable and transparent through digital interventions.

In the Employment Generation, Skill Development and Training Department, which has been mandated to solve the problem of unemployment amongst the youth in the State under the Ghar Ghar Rozgar Programme, 29 new posts of different cadres have been approved for creation while 57 existing ones will be done away with. The restructuring of the Directorate of Environment and Climate Change (DECC), wherein 24 new posts have been cleared with seven abolished.

 the Government aims to strengthen the implementation of the state environmental action plans to ensure clean air, clean rivers, waste management, sustainable environment, climate change and related policy matters.

In the Punjab Pollution Control Board, two new posts against two old ones will lead to right sizing and better efficacy in dealing with the challenges of pollution.

DR HARGOBIND KHURANA SCHOLARSHIP ENHANCED TO Rs 3K

To incentivise Class-X students of government schools, the Punjab Government has decided to enhance the Dr Hargobind Khurana Scholarship amount from Rs 2,500 to Rs 3,000 per month.The scheme, being implemented by the School Education Department since August 1, 2013, will also now be amended to promote brilliance among students by making it applicable to those obtaining 90 percent marks or above instead of the earlier ceiling of 80 percent. Students studying in Adarsh Schools, run by the Punjab School Education Board (PSEB), would be paid the scholarship amount by the Board out of its own funds.

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