How does the Finance Commission determine the amount of grants-in-aid provided to Panchayats from the Consolidated Fund of the State?
The Finance Commission determines the amount of grants-in-aid provided to Panchayats from the Consolidated Fund of the State by making recommendations to the Governor based on the principles that should govern the determination of taxes, duties, tolls and fees which may be assigned to or appropriated by the Panchayats, as well as the grants-in-aid to the Panchayats from the Consolidated Fund of the State.