Which one of the following authorities makes a 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?
- District Planning Committees
- State Finance Commission
- Finance Ministry of that State
- Panchayati Raj Ministry of that State
Explanation
Option (b) is correct
Under Article 243-I of the Constitution of India, the Governor of a State is required to constitute a State Finance Commission (SFC) every five years. The primary role of this commission is to review the financial position of the Panchayats and make recommendations.
