(1)The Government shall as soon as may be, within one year from the date of commencement of this Act and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the [Zilla Panchayats, Taluka Panchayats and Panchayats] [Substituted by the Amendment Act 8 of 1999.] and to make recommendation to the Government as to,-(a)the principles which should govern,-(i)the distribution between the State and the Zilla Panchayats, and Panchayats and the net proceeds of the tax, duties, tolls and fees leviable by the Government which may be divided between them and allocation between the [Zilla Panchayats, Taluka Panchayats and Panchayats] [Substituted by the Amendment Act 8 of 1999.] 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 [Zilla Panchayats, Taluka Panchayats and Panchayats] [Substituted by the Amendment Act 8 of 1999.];(iii)the grants-in-aid to the [Zilla Panchayats, Taluka Panchayats and Panchayats] [Substituted by the Amendment Act 8 of 1999.] from the consolidated fund of the State.(b)the measures needed to improve the financial position of the [Zilla Panchayats, Taluka Panchayats and Panchayats] [Substituted by the Amendment Act 8 of 1999.];(c)any other matter referred to the Finance Commission by the Governor in the interest of sound finance of the [Zilla Panchayats, Taluka Panchayats and Panchayats] [Substituted by the Amendment Act 8 of 1999.].
