Write any two functions of State Finance Commission.

1.	Write any two functions of State Finance Commission.
Answer» Under Article 243 of the constitution, the governor of each state constitutes a State Finance Commission at a gap of 5 years by which the financial status of Panchayats is viewed and recommendations are given to the Governor in respect of the measures to be taken for improvement. Two major functions of State Finance Commission : 1. It provides the right to Panchayats to earn income from taxes on certain items, fees and path taxes. 2. Suggesting appropriate measures for financial position of Panchayats to the state government.

Answer»

Under Article 243 of the constitution, the governor of each state constitutes a State Finance Commission at a gap of 5 years by which the financial status of Panchayats is viewed and recommendations are given to the Governor in respect of the measures to be taken for improvement.

Two major functions of State Finance Commission :

1. It provides the right to Panchayats to earn income from taxes on certain items, fees and path taxes.

2. Suggesting appropriate measures for financial position of Panchayats to the state government.

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