• A meeting of the Cabinet chaired by Chief Minister Capt Amarinder Singh approved several key recommendations of the 6th Punjab Finance Commission, including compensation for revenue losses on certain counts.
• The commission, headed by former Chief Secretary KR Lakhanpal, had submitted seven recommendations to the Governor on January 29, 2021.
• While six of the recommendations were approved, one relating to continuation of devolution of 4 per cent share of state taxes to local bodies for the year 2021-22 will be examined by a group of ministers. The group will comprise Finance Minister, Local Government Minister, Rural Development and Panchayats Minister and Water Supply and Sanitation Minister.
• Among the key recommendations accepted by the Cabinet are continuation of compensatory payments in case of loss of revenue from the abolition of octroi on power and liquor to local bodies for the year 2021-22; continuation of 16 per cent share of excise duty on IMFL and 10 per cent share on auction money from liquor vends to be devolved to the panchayati raj institutions and urban local bodies.
• The Finance Commission, was constituted by the state under Section 3(1) of the Punjab Finance Commission for Panchayats and Municipalities Act, 1994 vide a notification on July 3, 2018.

Tabling of CAG reports cleared

• The Cabinet cleared the presentation of Supplementary Demands for Grants for the year 2020-21 along with CAG audit reports for the year 2018-19, in the ongoing Budget session of the Vidhan Sabha.