How does the Finance Commission ensure that municipalities receive their fair share of proceeds from the taxes, duties, tolls, and fees they are authorized to levy or collect?
The Finance Commission ensures that municipalities receive their fair share of proceeds from the taxes, duties, tolls, and fees they are authorized to levy or collect by making recommendations to the Governor on the principles that should govern:

1. The distribution between the State and the Municipalities of the net proceeds of the taxes, duties, tolls, and fees levied by the State, which may be divided between them under this Part. This includes determining how much each municipality should receive from these state-collected revenues.
2. The determination of the taxes, duties, tolls, and fees that can be assigned to or appropriated by the municipalities. This helps establish a clear understanding of which revenue sources are available to municipalities and what their limits may be.
3. The grants-in-aid to the Municipalities from the Consolidated Fund of the State. These recommendations help determine how much financial support should be provided by the state government to each municipality based on their needs and responsibilities.