Amendment status not verified — confirm the current text below against the official source.
Constitution of Finance Commission:- (1) The Government with the prior approval of the Governor, shall as soon as may be within one year from the commencement of the Constitution (73rd Amendment) Act, 1992, and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the Gram Panchayats, Panchayats, Panchayat Samitis and Zila Parishads and to make recommendations to the Government as to- (a) the principles which should govern- (I) the distribution between the State and the Zila Parishads, Panchayat Samitis and Gram Panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the Government, which ,may be divided between them under this Act and the allocation between the Zila Parishads, Panchayat Samiti and Gram Panchayats at all levels 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 Panchayats; (III) the grants-in-aid to the Zila Parishad, Panchayat Samiti and Gram Panchayats from the consolidated Fund of the State; (b) the measures needed to improve the financial position of the Gram Panchayats, Panchayat Samitis and Zila Parishads; (c) any other matter referred by the Governor in the interest of sound finance of the Gram Panchayats, Panchayats Samitis and Zila Parishads. (2) The Finance Commission shall consist of one or more members of whom one shall be the Chairman. (3) The Chairman or members of the 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 members of the Finance Commission may resign his office by writing under his hand and addressed to the Governor but he shall continue in office untill his resignation is accepted by the Governor. (6) The casual vacancy created by the resignation of the Chairman or a member under sub- section (5) or for any other reason may be filled up by fresh appointment and the remaining period for which the Chairman or the member in whose place he was appointed would have held office. (7) The Finance 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 persons to give evidence or produce any record; and (c) such other powers as may be assigned to it by the Governor; (8) The Governor shall cause every recommendation made by the Financial Commission under this section, together with an explanatory memorandum as to the action taken thereon to be laid before the State Legislature.