Which one of the following authorities makes recommendations to Governor of State as to the principl...........

Indian Polity Centre - State Relations

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

District Planning Committee.

Finance Ministry of State.

State Finance Commission

None of the above.

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Explanation:

State Finance commissions are required to recommend:

(a) the principles that should govern the distribution between the State on the one hand and the local bodies on the other of the net proceeds of taxes, etc. leviable by the state and the inter-se allocation between different panchayats and municipalities,

(b) the determination of taxes, duties, tolls and fees which may be assigned to, or appropriated by the local bodies, and

(c) grants-in-aid from the consolidated fund of the State to the local bodies. SFCs are also required to suggest the measures needed to improve the financial position of the panchayats and municipalities.