Punjab revises Municipal Fund Act; to get 1% more share

The Punjab government has notified the revised Punjab Municipal Fund Act-2012 with effect from May 5 this year. With the revised notification, the income share of the local bodies department in the VAT collection in the state will increase by 1%.

The Punjab government has notified the revised Punjab Municipal Fund Act-2012 with effect from May 5 this year. With the revised notification, the income share of the local bodies department in the VAT collection in the state will increase by 1%.

HT Image

Local bodies minister Bhagat Chunni Lal on Monday said that with the amendments in the Act, the income share of the department in the VAT collection would increase from the earlier 10%.

"Despite having limited resources, the government had to face a fiscal deficit of Rs 100 crore after lifting the octroi from petrol and diesel in the state," he said, saying the government had taken this step to expedite the pace of development.