Punjab Finance Commission

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The Punjab Finance Commission is set up every five years to analyze the State of Punjab's financial performance, by the Governor of Punjab. The Finance Commission of Punjab is established under the guidelines provided in the Indian Constitution. The purpose of the committee is to give a review of the over all financial scenario of the state.

Glimpses of Punjab Finance Commission:

The Punjab Finance Commission is the state finance delegation of the state of Punjab. The Finance Commission is set up under the Article 243 Sec I of the Indian Constitution,

which orders that the Governor of the state would, within the commencement of the 73rd Amendment of the Constitution Act, 1992, at the end of every fifth year establish a Finance Commission for the purpose of reviewing the state's financial condition. The Finance commission reviews the financial status of the state and panchayats. The main purpose of this committee is to formulate financial policies pertaining to the state.

Aims of the Punjab Finance Commission:

The Punjab Finance Commission follows these objectives -
  • Determining the duties, tolls, taxes, and fees, which are to be imposed on the state
  • The allocation of the total proceeds from the taxes, tolls, duties, and fees imposed by the state, which is to be divided between the State and the Panchayats
  • Determining the financial roles of the Panchayats
  • The allocation of the total yield pertaining to taxes, tolls, duties, and fees imposed by the state to the different Panchayats
  • Offering financial assistance from the State Consolidated Fund to the Panchayats

Measures for rural development-Punjab Finance Commission:
  • The Finance Commission of Punjab constituted under Article 243 Sec I would attain to similar matters referred by the municipalities as per the Article 243Sec Y of the Constitution

  • To improve the financial performance of the Panchayats, which would help in the development of the rural sector

  • All recommendations by the Governor should be made together with an explanatory memorandum which is to be presented before the Legislature of the State To attain to matters mentioned by the Governor, to the Finance Commission regarding the proper financial implementations of the Panchayats

Term loans advanced to Punjab:
  • In 1984-85 it was ` 290.25 crore
  • In 1985-86 it was ` 281.31 crore crore In
  • In 1986-87 it was ` 349.35 crore ` crore in 1986-87
  • In 1987-88 it was ` 650 crore ` 650 crore in 1987-88
  • In 1988-89 it was ` 730 crore ` crore in 1988-89
  • In 1989-90 it was ` 560.01 crore ` crore in 1989-90
  • In 1990-91 it was ` 800 crore ` crore in 1990-91
  • In 1991-92 it was ` 600 crore ` crore in 1991-92
  • In 1992-93 it was ` 600 crore ` 600 crore in 1992-93
  • In 1993-94 it was ` 939 crore ` 939 crore in 1993-94

For further information on State Finance Commissions, please refer to the following sites