What is the role of the Finance Commission in reviewing the financial position of Panchayats?
The role of the Finance Commission in reviewing the financial position of Panchayats is to make recommendations to the Governor as to: (a) the principles which should govern the distribution between the State and the Panchayats of the net proceeds of taxes, duties, tolls, and fees that may be divided between them under this Part, including the allocation of such proceeds among different levels of Panchayats; (b) the determination of the taxes, duties, tolls, and fees which may be assigned to, or appropriated by, the Panchayats; and (c) the grants-in-aid to the Panchayats from the Consolidated Fund of the State.