Chandigarh, Mar 4 (IANS): The Punjab Cabinet headed by Chief Minister Amarinder Singh on Thursday approved several key recommendations of the Sixth Punjab Finance Commission, including compensation against revenue loss on certain counts.

The commission had submitted seven recommendations for 2021-22 to the Punjab Governor on January 29.

While six were approved by the Cabinet, one relating to continuation of devolution of four per cent share of state taxes to Local Bodies for 2021-22 will be examined by a Group of Ministers, an official spokesperson said after the meeting.

The Group of Ministers will comprise the Finance Minister, Local Government Minister, Rural Development and Panchayats Minister and Water Supply and Sanitation Minister.

The key recommendations accepted by the Cabinet include continuation of compensatory payments in case of loss of revenue from abolition of octroi on power and liquor to local bodies for 2021-22, continuation of 16 per cent share of excise duty on Indian-made Foreign Liquor (IMFL) and 10 per cent share on auction money from liquor vends to be devolved to the Panchayati Raj institutions and urban local bodies.