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To review the financial position of Panchayats, the State Government constitutes every five years a/an
  • a)
    finance committee
  • b)
    advisory commission
  • c)
    advisory committee
  • d)
    finance commission
  • e)
    None of the above/More than one of the above
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
To review the financial position of Panchayats, the State Government c...
State Finance Commission:
  • Its objective is to review the finances of local bodies and make relevant recommendations.
  • In 1994, Article 243 (I) provided for the constitution of the State Finance Commission for Panchayati Raj Institutions and Article 243 (Y) for urban bodies.
  • After the 73rd and 74th Constitutional Amendments in April 1994,  State Finance Commission was constituted in states.
  • Functions of State Finance Commission:
    • To recommend what percentage share should be given to Panchayati Raj institutions and urban bodies out of the revenue collection made by the State Government through fee, octroi, tax, etc.
    • To recommend which duties, octroi, taxes, tolls should be collected by the urban bodies / Panchayati Raj Institutions.
    • To earmark grants to local bodies from the Consolidated Fund of the State.
    • To review the financial position of Panchayati Raj Institutions of the State.
    • Acts as an intermediary between the Center and the States on financial issues.
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To review the financial position of Panchayats, the State Government constitutes every five years a/ana)finance committeeb)advisory commissionc)advisory committeed)finance commissione)None of the above/More than one of the aboveCorrect answer is option 'D'. Can you explain this answer?
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