The Punjab Local Government Act, 2025
The Punjab Local Government Act, 2025, passed by the Punjab Assembly on October 13, 2025 and assented to by the Governor on October 20, 2025 reconstitutes local government in Punjab and consolidates laws relating to its powers and functions. The Act aims to strengthen local government as the third tier of government, enabling meaningful devolution of political, administrative, and financial responsibilities to elected representatives, In line with Article 140A of the Constitution. It seeks to promote good governance, efficient service delivery, and participatory decision-making at the local level.
Under the Act, each local government succeeds the property of defunct local bodies within its jurisdiction, with the Secretary, upon ministerial approval, assigning all properties, funds, rights, claims, or liabilities among local governments. The Punjab Government is responsible for demarcating local areas, which may be organized into town corporations, municipal corporations, municipal committees, or tehsil councils. Each local government is a body corporate with its own common seal. The government determines the number of union councils in each local body, with each union council consisting of one or more census blocks. The Deputy Commissioner facilitates the Election Commission in delimitation, which is reviewed every ten years, except for union councils.
Local governments are structured to include a head, deputy mayor, members, and administrative staff, with the Secretary authorized to establish council units in urban areas. A union council comprises nine members and four reserved seats. Tehsil councils, town corporations, municipal corporations, and municipal committees have their respective heads, deputies, chairpersons of union councils, and reserved members. The authority of local governments is limited to functions assigned under the Act, which include enforcing municipal laws, collecting taxes, fees, and tolls, managing development plans, and preparing financial statements. Disputes may be referred to union councils with the consent of parties or by police officers in case of compoundable offences.
District authorities perform devolved functions of government departments at the district level, and local governments may delegate functions to union councils or establish joint authorities with other local governments. Local governments must frame bye-laws within three months of assuming office. Elections are conducted by the Election Commission, which sets election dates, issues codes of conduct, and notifies returned candidates. Eligibility for elected office requires inclusion in the local electoral roll and age criteria: 21 for general members and 25 for heads, deputy mayors, or vice chairpersons. Terms of office are five years, with provisions for filling vacancies and appointing administrators after term expiry.
Financial management includes maintaining separate accounts for local funds and public accounts, audits by the Auditor General, and restrictions on incurring debt without government approval. The Punjab Local Government Finance Commission is constituted to oversee financial matters. Chief officers have powers to assess taxes and notify payments, with appeal provisions for aggrieved parties. Local governments are responsible for street lighting, maintenance, watering, water supply, and naming or renaming roads and public places. The Act also defines offences and corresponding penalties in its schedules.
