Amendment status not verified — confirm the current text below against the official source.
(1) The Governor shall, on the basis of recommendation of the Finance Commission- (i) distiribute between the State Government and the Munici palities the net proceeds of the taxes, duties, tolls and fees which the State levy and collect ; and (i i ) allocate between the Municipalities their respective shares of such proceeds. (2) While distributing or allocating shares of such proceeds to a Municipality the Governor shall take into consideration the gross sum collected in the Municipality area, the cost of collection and the municipal obligations and the performance of the Municipality.