Which one of the following authorities makes recommendation to the Governor of a State as to the principles for determining the taxes and duties which may be appropriated by the Panchayats in that particular State?

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Q: 84 (IAS/2010)
Which one of the following authorities makes recommendation to the Governor of a State as to the principles for determining the taxes and duties which may be appropriated by the Panchayats in that particular State?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,223,67,25,223,27,15

keywords: 

{'panchayats': [1, 0, 2, 12], 'panchyati raj ministry': [0, 0, 1, 0], 'district planning committees': [0, 0, 1, 1], 'state finance commission': [0, 0, 2, 2], 'duties': [0, 0, 1, 1], 'authorities': [1, 0, 2, 1], 'taxes': [2, 1, 1, 0], 'finance ministry': [1, 0, 2, 1], 'governor': [5, 1, 0, 6], 'principles': [0, 0, 1, 0], 'recommendation': [0, 0, 1, 1]}

The correct answer is State Finance Commission.

Explanation:

The State Finance Commission is a constitutional body that is established by the Governor of a state under Article 243I of the Indian Constitution. The primary function of the State Finance Commission is to make recommendations to the Governor of the State on the principles that should govern the distribution of tax proceeds between the state government and the Panchayats in the state.

The State Finance Commission also recommends the measures that need to be taken by the Panchayats in the state to improve their financial position and to make them financially self-sufficient. The Commission is also responsible for reviewing the financial position of the Panchayats in the state and for making recommendations for the improvement of their financial management.

Therefore, the State Finance Commission makes recommendations to the Governor of a state as to the principles for determining the taxes and duties which may be appropriated by the Panchayats in that particular state.

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