Who is empowered to review financial position of the Panchayats?
- AOption (a)
Chairman of Block Committee
- BOption (b)
Chief Minister
- COption (c)
Chairman of District Council
- DOption (d)
Finance Commission constituted by the Governor
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Correct answer
Finance Commission constituted by the Governor
Why this answer is correct
The correct answer is option 4.
Key Points
- Article 243-I: The Governor of a State constitutes a State Finance Commission every 5 years.
- Its main function is to review the financial position of Panchayats and recommend:
- Distribution of taxes, duties, tolls, and fees between the State and Panchayats.
- Principles for grants-in-aid to Panchayats from the Consolidated Fund of the State.
- Measures to improve the financial position of Panchayats.