PUNJAB GOVT GAZ., (EXTRA.), APRIL 19, 1994
(CHTR. 29, 1915 SAKA,
DEPARTMENT OF LEGAL AND LEGISLATIVE AFFARS PUNJAB
Notification
The 19th April, 1994
No 8-Leg./94.-Ihe following Act of the Legislature of the State of Punjab receive! the assent of the Governor of Punjab on the 19th April, 1994, and is hereby published for general informotion :-
THE PUNJAB FINANCE COMMISSION FOR PANCHÁYATS AND
MUNICIPALITIES ACT, 1994
(Punjab Act No. 8 of 1994)
AN
ACT
to provide for the constitution of the State Finance Commission to review the financial position of the Panchayats and Municipalities in the State and to make recommendationsin terms of the provisions of Article 243-1 and Article 243-Y of the Constitution of India.
25
BE it enacted by the Legislature of the State of Punjab in the Forty fifth Year of the Republic of India as follows:
1. () This Act may b called the Punjab Finance Commission for Panchayats and Municipalities Act, 1994.
(2) It shall con: into force at once.
2. In this Act, unless the context otherwise requires,
(a) Fiaan CTmmission" means the Punjab Finance Com nission for Panchayats and Municipalities constituted under section 3 of this Act ;
(b) Governor" means Goveraor of the State of Punjab;
(c) "Member" means a member of the Finance Commission and includes its Chairman ;
(d) the expressions "Municipality"" and "Panchayat" shall have the same meaning as assigned to them under
article 243
of the Constitution of India ;
(e) *Prescribed" means prescribed by rules made under this Act ;
(f) "State Government" means State Government of the State
of Punjab.
3. () As soon as may be within one year from the commence ment of the Constitution (Seventy-third Amendment) Act, 1992 and thereatter at the expiration of every fifth year, the Governor of Punjab Shall by Notification, constitute a Finance Commission to e called the Punjab Finance Commission for Panchayats and Municipalities for reviewing the financial position of Panchayats and Municipalities and
1or making recommendations in terms of the provisions of Article 243-l
and Article 243-Y of the Constitution of India.
Short title and
commencemen t.
Definitions.
COnstitution of
Finance Com
mjssion.
PUNJAB GOVT GAZ. (EXTRA.), APR L 19, 1994 25
(CHTR 29, 1915 SAKA
DEPARTMENT Ot LEGAL AND LEGISLATIVE AFFAIRS PUNJAB Notification
The 19th April, 1994
No 8-Leg./94. —The following Act of the egisl t r of the State of Punjab receive ! the assent of the Governor of Punjab on the 19th April, 1994, and is hereby pub ished for gen inform o :—-
THE J FINANC CO I FOR PANCHA AND
MUNICIPALITIES ACT, 1994
(Punjab Act No. § of 1994)
AN
to provide for the constitution of the State F n C mis i to review the fina i l p io o the P ayats and Municipalities in the State n to recom endations in terms of the provisions of Article 2 n Art Y of the Constitution of India.
BE it enacted by the Legislature of the State j in h Fort - fifth Year of the Republic of India o low —
1. (I) This Act may bz called the j mis ion for Panchayats and Municipalities Act, 1994.
(2) Tt shall me into force at once.
2. In this Act, unless the atext r ise i — (@) "Finance Commission" eans t e unj i ce Commission for anchayats unic palit es onstituted uader ct n f t is ct ;
(b) "Governor" means overnor f t e State f b (¢) "Member" means a ember of t e Finance Commission and includes its Cha m n ;
(d) the expressions "Municipality" and "Panchayat" shall have the same meaning as assi ned to t under article 243 of the Constitution of India ;
(¢) "Prescribed" means prescribed by rules made under this Act ;
(f) "State Government" means State Government of the State of Punjab.
3. (I) As soon as may be within one year from the com ence ment of the Constitution (Seventy-third Amendment) Act, 19 2 and thereafter at the expiration of every fifth year, the Governor of Punjab shall by Notification, constitute a Finance 'C mission to b called the Punjab Finance Commission for Panchay ts and Municipalities for reviewing the financial posit on of Panchay ts and Municipalities and for making recommendations in terms of the provisions of Article 243-1 and Article 243-Y ofthe Constitution of India.
Short title and
commencement,
Definitions.
Constitution of
Finance Com-
mission.
1
Qualifications for appointment as Chajrman and Members of Finance
Commission. Persons haying financial Or other interests not to be appoin ted as Members of Finance
Commission.
Disqualifications for being mem ber of Finance Commission.
26 PUNJAB GOVT GAZ.. (EXTRA.), APRIL 19, 1994
(CHTR. 29, 1916 SAKA)
(2) The Finance Commission constituted under shall consist of a Chairman and four other Members lo be appointcá by the Governor of Punjab.
(3) The Finance Commission shall have its headquarters at Chandi garh or at such other place as imay be notified by the State GOVer ment from time to time.
sub-section ()
4. The person to be appointed as Chairman of the Finance Commission shall have an experience in public affairs and the persons to be appointed as Members thereof shall
(a) have special knowledge and experience in economic and financial matters relating to Panchayats ; or
(b) have special knowledge and experience in economic and financial matters reating to Municipalities ; or
(c) have wide experience in financial matters and in adminis tration ; or
(d) have special knowledge of economics.
5. () Before appointing a prson as a Chairnan or Member of the Finance Connission, tha Goverao: shallsitisfy himself that the pYrson to be so appointe 1 h1s nT finansial o: any othsr iaterest as is ikely to affect prejudicialiy his fuaztio13 as Cairnan or Mnber of the Finance Commission.
(2) After the appointment of Chairman and Members of the Finance Commission, the Govet nor shall also satisfy himself from time to time with respect to the Chairman and Members of the Finance Commission that they may have no financial or any other interest as is likely to affect prejudicially their functions as Chairman or Members of the Finance Commission and for that purpose the Governor may require the Chairman and the Members to furnish to him such infor mation as he considers necessary with a view to satisfy himself as to whether the Chairman or the Members have any such interests.
6. A person shall be disqualified for being appointed as, or for being a Member, of the Finance Commission,
(a) if he is of unsound mind ;
(6) if he is an undischarged insolvent ;
(C) if he has been convicted of an offence involving moral turpitude ; or
(a) if he has such financial or any other interest as is likely to a Member of the affect prejudicially his functions as Finance Commission.
Qualifications
for appointment
as irman
and Members
nance
Commission.
Persons having
financial or
other interests
not to appoin-
ted as e be
nce
Commission.
Disqualifications
for being mem-
ber of Finance
Commission.
26 PU A G GAZ. (EX ), A 19, 1994
(CH 20 1916 SA
) T F nan C mis on constituled under sub-section (n al onsist o a C m an fo o h e bers (0 be ap i eq b the G o P
(3) F n mis i n al have its h quarters a Chand;. garh or at such other place as may be notified by the State Govern. from time to time.
4 to a i t a m o th
Commission shall have an experience in public affairs and the persons tq a i t a embers h h l—
a s i l l e r e n omic
financial matters relating to Panchayats ; or
i l l e r e i
financial matters relating to Municipalities ; or
¢ i er ce n n cial at ers n minis-
tration ; or
(d) have special knowledge of economics. I ef r ointi g :rson nai m ember the ce ommis ion, th: overaor shall sitisfy self that the parson to be so appointed his no financial or any other interest as is likely to affect prejudicially his fuactioas as rma or Mamber of ommis i
(2) After the appomntmeat of Chairman and Members of the Finance Commission, the Governor shall also satisfy himself from time to time with respect to the Chairman and Members of the Finance ommission that they ay e financial or other interest as is likely to affect prejudicially their functions as Chairman or Members of the Finance Commission and for that purpose the Governor a require the Chairman and the Members to furnish to him such infor- mation as he considers necessary with a view to satisfy himself as to hether the hai an or the embers e such interests.
. er n shall isqualified r ei pointed s, r r being a ember, of the Finance ommission,—
(a) if he is of ns und i d ;
(6) if he is an undischarged insolvent ; (©) if e as een onvicted f ff nce olving oral turpitude ; or
nterest as is l ely td) i i i ther i X (d) if e has f ancial or y oth BR or of ther affect prejudicially his f nctions as
Fi ancz Com ission.
2
PUNJAB GOVT GAZ., (EXTRA.), APRIL 19, 1994
(CHTR. 29, 1916 SAKA)
7. Every nember of the Finance Gommission shall hold ofricc for such period as may be specilied in the order of the Governor appoint ing him as such but shall be eligible for reappointment :
Provided that he may, by a letter addressed to the Governor, resign his office, at any time prior to the period specified in his
8. The Chairman and Members of the Finance Commission shall render whole time or part time service to the Finance Commission as the Governor may in each case specify and there shall be paid to the Chairman and Members of the Finance Commission such foes or salaries and such allowances as the State Government may, prescribe from time to time.
27
9 The Finance Commission shall review the financial position of the Panchayats and Municipalities and make recommendations to the Governor
(A) in the case of Panchayats as to
(a) the principles which shall govern
(i) the distribution betw3en the State and the Panchayats of the net procecds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them and the allo cation between the Panchayats at all levels of their respective shares of such proceeds :
(i) the determination of the taxcs, duties, tolls and fees which may be assigned to, or appropriated by the Panchayats ; and
(iii) the grants-in-aid to the Panchayats from the Consoli dated Fund of the State ;
(B) in respect of Municipalities as to Term of office
Members.
(6) the measures needed to improve the financial position of the Panchayats ; and
(a) the principles which shall govern of
(c) any other matter referred to the Finance Commissionby the Governor in the interests of sound finance of the Panchayats ;
Conditions of
service and
salaries and
allowançes of
Functions of the
Finance Co m
mission.
(i) the distribution between the State and the Municipalities of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them under this Act and the allocation between the Municipalities at all levels of their respective shares of such proceeds;
appointment letter.
Members.
U AB G Z. (EXT ) L 19, 1994
(CH 29, 1916 SA
7. Every member of the Finance Commission shall hold office for such period as may be specified inthe order of the Governor appoint- ing him as such but shall be eligible for reappointment :
P ovided that may, a le ter add e sed to
resign h s office, at any time prior to the period ppo ntment le ter.
the G nor,
specified in his
8 rman nd e be he nance mis on s
render whole time or part time service to the Finance Commission as the Governor may in each case specify and there shall be paid to the m embers of the Finance mis ion such fees or
salaries and such allowances as the State Government may, prescribe from time to time.
9. mis ion shall review the financial position of the Panchayats and Municipalities and make recommendations to the Governor—
(A) inthe case of Panchayats as to—
(a) the principles which shall govern—
(i) the distcibution betweza the State and the Panchayats th s t a t
h t hi ded w
hem o een nchayats
all levels of their respective shares of such proceeds ;
(ii) mi o es, uti s, l hi a r pri s;
(it ) rants-in-aid anchayats om onsoli- t te ;
(b) the easures pr ve cial position of ;
(¢) any at e i ommis i
ove interests nance
Panchayats ;
(B) in respect of Municipalities as to— (¢) the principles which shall govern—
(i) the distribution between the State and the Municipalities of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between nder t i Act t al o et een t
Municipalities at all levels of their respective shares of such proceeds ; '
Term of office
o Mc be .
Conditions of
service nd
alaries nd
lowances
e ber
ions he
nance e=
i on.
3
RawmttendatiuN Stale Legislaturz. ules.
UNAOV UNZ,NLA) ArL , 1994 ooted d ofhe Nate :
popit y thc
Mnleipalities frou the () o0e e0ded (o improvo Iho mncial position (it) Nmmoning nd onlorcing tho () egjuiring the produotion of any () amy othor ntter rofored to the Finance Commission by (he owomor in he mterost of sond nance of the Muniepalitie., Toes
0 The lanwo (ommiaion slhall detormine its proccdurc in the |oemanco ot' it umwtions and shall have al! (ho powers of a civil attendanco of witnesses
document : and
(e) toquisitioning auy public rocord from any court or office. SS 59 LR () Govt. I'ress, UT, Chd,
11, The Governor slall cuse every recommendation made by the Financo Commission undor this Aet together with xplanatory memoran dum as (o the action taken theroon to be laid belore the Legislature of the Salc,
12. () The Stato Govotmont muy by Inotification make rules for carrying out tho purposs oths Act
(2) Bvery rule made undor this section shall be laid as soon as may be, after it is made, before the House of the State Legislature, while it is in sess on for a total poriod ol ten days, which may be comprised in one session or in two or moro sucCessiVe sessions, and if, before the expiry of the sessio 1 in which it is so laid or ho successive sessions aforessaid, the House agres in making any modiication in the ru'c or the House agrees, that the rule should not be made, the rule shall thereatter have cilet only in such modified form or be of o ctteet, as (he case may be, so, Ihowever, that any such moditicat on or uuulment slhall be without prejudice to the validity of nything preiously done or onmitted to be done under that rule.
GURDEV SINGH,
Additional Secretury to Goverument of Punjab, Deparnent of Legal and Legislaive Affains. out under ho codo o (vl Procedure, 19038 while trying a suit in oet ot the ollowing attor, nanicly :
Pande and
owas ob inane
RUIN ETIN
Raovoum mendations of Fame La
mission We we and betwee the Ntate Lopistanay Power
© oules
Womake
' 0H,
lL VUMIA TR COVE G
N (ERI) ALIEEE 1
904
Corben HAKAN) Gov he detention ol We Ce n, dation, tals on ul 7 Whey ny Te asin dao appropriated hy gg Ate patitenid
iY te pant ead fe tHe Noidcipatitics Tron (he Conrrolinted nd of the Sete WD he eines needed to dmprove ( he Linancinl
of the Maicipaditien and fronsition
matter colerred to the mance Commission by finance of the
WY any whe
the Clovernor in the mterests ol qotind NMundvipandition
0 the Diane Commission shall determime its pro cedure in the
perform ce of i functions and shall have al' the powers of a cil cot under the code of Civ Procedure, 1908 while trying a suit in respect ol the following matters, namely
GO) summoning and onloreing the attendance of witnesses ; WY requiring production of any document; and
(@) requisitioning any public record fron any court or office. 1, Governor shall cause every recommendation made by the Finance Commission under (his: Act topether with explanatory memoran- dum as to the achio taken thereon to be laid before the Legislature of the State,
12. (I The State Government may by for ca rying out the purposs of ths Act notification make rules
(2) Every rule made under this section shall be laid as soon as may be, after it is made, before the House of the State Leg sl ture, while it 1s in sess on for a total period of ten days, which may be comprised in one session or in two or more successive sessions, and il, before the expiry of the ession in which it is so Laid or the successive sessions atoressaid, the House agrees in making any modification in th ru'e or the House agrees, that the rule should not be made, (he rule shall thereatter have cttect only wesuch modified form or be of no effect, as (he case may be, so, however, that any such moditicat on or noulnent shall be without prejudice to the validity of anything previo sly done or omitted to be done under that rule.
GURDEV SINGH,
Additional Secretary to Government of Punjab, Department of 1 egal and Legislative Affairs. SRO TR (IY Govt Press, UT, Chd,
4