What is the duty of the Finance Commission according to the constitution?
The duty of the Finance Commission, according to the constitution, is to make recommendations to the President on the distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under this Chapter, and the allocation between the States of the respective shares of such proceeds. They also need to recommend principles for grant-in-aids from the Consolidated Fund of India to the States, measures needed to augment the Consolidated Fund of a State to supplement the resources of Panchayats in the State on the basis of their recommendations and the same for municipalities. In addition, they are also required to consider any other matter referred to them by the President in the interests of sound finance.