Section 98(1) in The Himachal Pradesh Panchayati Raj Act, 1994
(1)The government shall within one year from the commencement of the Constitution (Seventy-third Amendment) Act, 1992 and thereafter at expiration of every fifth year constitute a Finance Commission to review the financial position of Panchayats and to make recommendations to the Government as to -(a)the principles which should govern -(i)the distribution between the State and the Panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the Government which may be divided between them and allocation between the Panchayats of their respective shares of such proceeds;(ii)the determination of the taxes, duties, tolls and fees which may be assigned to or appropriated by the Panchayats;(iii)the grants-in-aid to Panchayats from the Consolidated Fund of tie State.(b)the measures needed to improve the financial position of the Panchayats:(c)any other matter referred to the Finance Commission by the Government in the interest of the sound finance of the Panchayats.
