Functions of the State Finance Commission
- examining the financial standing of the state's various municipal and Panchayati Raj institutions.
- utilizing the money the state government received from the federal government.
- funding transfers to various Panchayati Raj Institutions and Municipal Bodies throughout the State from the State's Consolidated Fund.
- to implement different measures to enhance the state's Panchayati State institutions and various municipal authorities' financial standing.
- to serve as a liaison for financial matters between the State and Central Governments.
Grounds of Recommendations:
- deciding how many fees, taxes, tolls, and other charges panchayats are allowed to collect.
- Distribution of the State's net income from tariffs, taxes, tolls, and other levies among the Panchayats.
- Assistance grants to Panchayats.
- At various panchayat levels, it may be allocated or spent.
The State Finance Commission is a - (a) Legal body (b) Non-statutory body (c) Constitutional body (d) None of the above
The State Finance Commission was established by the Constitution. The State Finance Commission is a constitutional entity because it was created by the 73rd Constitutional Amendment Act of 1992. The State Finance Commission was constituted under Article 280 in all of India's states in 1993, following the example of the Finance Commission of the Center.