India, May 15 -- Chandigarh

Nearly six months after the 16th Finance Commission submitted its report, the Punjab government is yet to constitute the Seventh State Finance Commission (SFC) for recommending the devolution of state's tax revenues and their apportionment between the panchayati raj institutions and municipal bodies in the state.

The state government is constitutionally required to establish the SFC every five years. Under Article 243-I of the Constitution, "the governor shall, as soon as may be within one year from the commencement of the Constitution (73rd Amendment) Act, 1992, and thereafter at the expiration of every 5th year, constitute a Finance Commission to review the financial position of the panchayats, and to make ...