What is the purpose of constituting a Finance Commission for Panchayats?
The purpose of constituting a Finance Commission for Panchayats is to review the financial position of the Panchayats and make recommendations to the Governor regarding principles governing the distribution of taxes, duties, tolls, and fees between the State and the Panchayats, allocation of proceeds among different levels of Panchayats, determination of taxes assigned to or appropriated by the Panchayats, and grants-in-aid from the Consolidated Fund of the State.