Amendment status not verified — confirm the current text below against the official source.
Finance Commission.— (1) The Government shall as soon as may be, within one year from the date of commencement of this Act and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the 140[Zilla Panchayats, Taluka Panchayats and Panchayats] and to make recommendation to the Government as to,— (a) the principles which should govern,— (i) the distribution between the State and the Zilla Panchayats, and Panchayats and the net proceeds of the tax, duties, tolls and fees leviable by the Government which may be divided between them and allocation between the 141[Zilla Panchayats, Taluka Panchayats and Panchayats] of their respective shares of such proceeds; (ii) the determination of the taxes, duties, tolls and fees which may be assigned to or appropriated by the 142[Zilla Panchayats, Taluka Panchayats and Panchayats]; (iii) the grants-in-aid to the 143[Zilla Panchayats, Taluka Panchayats and Panchayats] from the consolidated fund of the State. (b) the measures needed to improve the financial position of the 144[Zilla Panchayats, Taluka Panchayats and Panchayats]; (c) any other matter referred to the Finance Commission by the Governor in the interest of sound finance of the 145[Zilla Panchayats, Taluka Panchayats and Panchayats]. (2) The Finance Commission shall consist of a Chairman and two other members. (3) The Chairman and members of Finance Commission shall possess such qualification and shall be appointed in such manner as may be prescribed. (4) The Finance Commission shall determine its procedure. (5) The Chairman or a member of the Finance Commission may resign his office by writing under his hand and addressing to the Finance Secretary to the Government, but he shall continue in office until his resignation is accepted by the Government. (6) The casual vacancy created by the resignation of the member or Chairman under sub-section (5) or for any other reason, may be filled by fresh appointment and a member or Chairman so appointed shall hold office for the remaining period for which the member or Chairman in whose place he was appointed would have held office. (7) The Commission shall have the following powers in the performance of its functions, namely:— (a) to call for any record from any officer or authority; (b) to summon any person to give evidence or produce records; (c) such other power as may be prescribed. (8) The Governor shall cause every recommendation made by the Finance Commission under this section together with an explanatory memorandum as to the action taken thereof to be laid before the State Legislature. ---79--- CHAPTER XII Miscellaneous