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Q83
(IAS/2010)
Polity & Governance › Local Government › State Finance Commission
Answer Verified
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?
Result
Your answer:
—
·
Correct:
B
Explanation
The Constitution (73rd Amendment) vests in the State Finance Commission (SFC) the constitutional duty to review the financial position of panchayats and to make recommendations to the Governor as to the principles that should govern the distribution of taxes, duties, tolls and fees that may be appropriated by panchayats and the grants-in-aid to be given to them. This is a statutory constitutional function distinct from administrative departments like the State Finance Ministry or Panchayati Raj Ministry, and from planning bodies like District Planning Committees, which do not have the constitutional mandate to recommend principles of taxation for panchayats .
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