(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.(3)The Chairman and the members of the Finance Commission shall possess such qualification and shall be appointed in such manner as may be prescribed by Government.(4)The Finance Commission shall determine its procedures.(5)The Chairman or a member of the Finance Commission may resign his office by writing under his hand and addressed to the Chief Secretary to the Government of Assam, but he shall continue in his office until his resignation is accepted by the Government.(6)The Casual vacancy created by the resignation of the member or Chairman under sub-section (5) or for any other reason, may be filled by fresh appointment and a member or Chairman so appointed shall hold office for the remaining period for which the member or Chairman in whose place he has been appointed would have held office.(7)The Commission shall have the following powers in the performance of its functions namely(a)to call for any record from any Officer or authority;(b)to summon any person to give evidence or produce records; and(c)such other powers as may be prescribed.(8)The Governor of the State shall cause every recommendation made by the Finance Commission under this section together with an explanatory memorandum as to the action taken thereon to be laid before the House of the State Legislature.
