Cabinet approves GST Bill to be tabled in Budget session

Wednesday, 14/06/2017

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Chandigarh : Punjab Cabinet on Tuesday gave the go-ahead for the draft model GST Bill to be put before the House in the budget session of the state assembly, while giving its approval to the report of the Fifth State Finance Commission submitted to the Punjab Governor.

These key decisions were taken at a meeting of the Council of Ministers, chaired by Chief Minister Captain Amarinder Singh.

The Cabinet also decided to bring the draft bill on the appointment of Administrators to the Market Committees and the amendment to the Punjab Agricultural Produce Markets Act, 1961 in the budget session of the Vidhan Sabha, according to an official spokesperson.

The enactment of State Goods and Services Tax (SGST) Bill, duly approved by GST Council and vetted by Legislative Department of the Union Ministry of Law, will pave the way for the repeal of the Punjab Municipal Fund Act, 2006 and Punjab Municipal Infrastructure Development Act, 2011. It will boost the state exchequer by enabling 100 per cent VAT and additional tax thus collected on petroleum products and liquor to be deposited in the treasury.

The Fifth State Finance Commission, which the cabinet has approved, recommends the continuation of existing devolution of 4 per cent share of net proceeds of State Taxes to Local Bodies for 2016-17 to 2020-21. This will result in transfer of Rs 4,364.40 crore (Estimated) to both Rural and Urban Local Bodies, with the state government accepting the Commission’s recommendations regarding share of Urban Local Bodies and Inter-se distribution among PRIs.

It was decided that some other recommendations of the Commission be examined by the concerned Administrative departments before taking a final decision on them, said the spokesperson. These recommendations include conditions laid down by the 14th Finance Commission of the GoI for general performance grants, further measures for improving performance of urban local bodies, computerization and e-governance, improving data base, capacity building, accounting and auditing systems, benchmarking and evaluation, people’s participation, privatisation in urban local bodies, urban land, land tax and housing policies, some miscellaneous measures and suggestions.

APPOINTMENT OF ADMINISTRATORS APPROVED

The Cabinet also decided to bring the draft bill regarding the appointment of Administrators by way superseding existing nominated Market Committees by amending section 12 of the Punjab Agricultural Produce Markets Act, 1961, in the budget session.

DRAFT BILL TO AMEND Punjab Agricultural Produce Markets Act, 1961

It also decided to introduce draft bill to amend the Punjab Agricultural Produce Markets Act, 1961 in order to facilitate marketing reforms as per the model act circulated by Government of India, to ensure greater transparency and efficiency in market of agriculture produce and to secure higher crop value for the farmers by ensuring larger Public-Private Partnership in markets. This move will also create level playing field for the private players and the government- controlled market committees.

OKAYS INCREASE IN WOMEN QUOTA IN PRIs, ULBs FROM 33 PER CENT TO 50 PER CENT

In a major decision ahead of the Budget session of the Vidhan Sabha, the Punjab Cabinet on Tuesday gave its go-ahead for an increase in women reservation in Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs) from 33 per cent to 50 per cent. The enhancement of women reservation quota in PRIs and ULBs is aligned to a key poll promise of the Captain Amarinder Singh government, which is committed to empowerment of women in the state.

DRAFT BILL TO AMEND PANCHAYATI RAJ ACT, 1994

The draft Bill to amend the Panchayati Raj Act, 1994, the Punjab Municipal Act, 1911 and the Punjab Municipal Corporation Act, 1976, will be placed in the Punjab Vidhan Sabha budget session, commencing on Wednesday, a spokesperson of the Chief Minister’s Office (CMO) disclosed after the cabinet meeting. The amendment will help empower women in the rural areas by enhancing their reservation quota in the direct elections for the members of Gram Panchayats, Panchayat Samitis and Zila Parishads, besides Municipal Corporations, Municipal Councils and Nagar Panchayats. The representation of women in the offices of Sarpanches of Gram Panchayats, Chairmen Panchayats Samitis/Zila Parishads besides Mayors of Municipal Corporations and Presidents of Municipal Councils/Nagar Panchayats will also be enhanced accordingly.

EXEMPTION TO MEGA FOOD PARKS under rera

The Council of Ministers, at its meeting chaired by Chief Minister Captain Amarinder Singh, also decided to exempt the Mega Food Parks being set up in the state from the provisions of Section 44(2) of the Punjab Apartment and Property Regulation Act, 1995 (PAPRA). The decision is aimed at boosting the development of the food procession industry, especially the Mega Food Parks projects in the state, besides securing employment for the unemployed youth. The decision will exclude future projects from the requirement of taking a license under PARA. Further, to ensure fiscal management in view of constraint resources of revenue, the Cabinet decided to seek Government of India’s approval to swap high cost market loans taken by the state government with new low cost market loans. This decision would go a long way in improving the financial position, besides providing better opportunities to incur expenditure on development works in the state.

NOD TO KHALSA UNIVERSITY (REPEAL) ORDINANCE, 2017

The Cabinet also gave the nod for the Khalsa University (Repeal) Ordinance, 2017 to be presented in the House for enactment. The decision has been taken to preserve the glorious heritage and rich legacy of over century old prestigious Khalsa College.

significant decisions

The Fifth State Finance Commission, which the cabinet has approved, recommends the continuation of existing devolution of 4 per cent share of net proceeds of State Taxes to Local Bodies for 2016-17 to 2020-21.

The Cabinet also decided to bring the draft bill on the appointment of Administrators to the Market Committees and the amendment to the Punjab Agricultural Produce Markets Act, 1961 in the budget session of the Vidhan Sabha.