(1)the State Government shall as soon as may be, within one year from the date of commencement of the Constitution (seventy-third amendment) Act, 1992 and thereafter at the expiration of every fifth year constitute a Finance Commission to review the financial position of the Panchayats and to make recommendations to the Governor as to(a)the principals which should govern(i)the distribution between the State and the Panchayats net proceeds of the taxes, duties, tolls and fees livable by the State which may be divided between them and allocation between Panchayats at all levels of their respective sale of such proceeds.(ii)the determination of the taxes, duties, tolls and feeds which may be assigned to or appropriated by the Panchayats.(iii)the Grants-in-aid to the Panchayats from the consolidated fund of the State.(b)the measures needed to improve the financial position of the Zilla Parishads, Anchalik Panchayats and Gaon Panchayats.(c)any other matter referred to the Finance Commission by the Governor in the interest of sound finance of the Panchayats;(d)The Finance Commission shall consists of a Chairman and two other members to be appointed by the Governor.
