How does the state legislature ensure that municipalities receive their fair share of proceeds from the taxes, duties, tolls, and fees they are authorized to levy or collect?
The state legislature ensures that municipalities receive their fair share of proceeds from the taxes, duties, tolls, and fees they are authorized to levy or collect by establishing a Finance Commission under Article 243-I. This commission reviews the financial position of the municipalities and makes recommendations to the Governor regarding the distribution of the net proceeds of these taxes between the state and the municipalities, as well as determining the taxes and fees that can be assigned to or appropriated by the municipalities. The Finance Commission also recommends the grants-in-aid from the Consolidated Fund of the State for the municipalities.