How can the state legislature make changes to the laws governing municipal finance and functions?
The state legislature can make changes to the laws governing municipal finance and functions by amending or passing new legislation in accordance with the provisions outlined in Article 243X and 243Y of the Indian Constitution. These provisions allow the legislature to authorize municipalities to levy, collect, and appropriate taxes, duties, tolls, and fees; assign certain state-collected taxes to municipalities; provide for making grants-in-aid to municipalities from the Consolidated Fund of the State; and constitute funds for crediting and withdrawing moneys received by or on behalf of the municipalities. The Finance Commission, as outlined in Article 243Y, is responsible for reviewing the financial position of municipalities and making recommendations to the Governor regarding various aspects of municipal finance and functions, including taxes, duties, tolls, fees, grants-in-aid, and fund management.