What is the role of the Finance Commission in ensuring that municipalities have adequate resources to perform their functions and implement schemes as per the law?
The role of the Finance Commission in ensuring that municipalities have adequate resources to perform their functions and implement schemes as per the law is to review the financial position of the municipalities and make recommendations to the Governor on principles governing the distribution between the State and the Municipalities of the net proceeds of the taxes, duties, tolls, and fees leviable by the State. The Finance Commission also recommends the determination of the taxes, duties, tolls, and fees that may be assigned to or appropriated by the municipalities, as well as the grants-in-aid to the municipalities from the Consolidated Fund of the State.