Section 138(1) in Arunachal Pradesh Panchayat Raj Act, 1997
(1)The Governor shall as soon as soon as may be within one year from the 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 Parishads, the Anchal Samitis and the Gram Panchayats and to make recommendations to the Governor as to;-(a)the principles which should govern-(i)the distribution between the State and Zilla Parishads, the Anchal Samitis and the Gram Panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the State which may be divided between them under this Act and allocation between the Zilla Parishads, Anchal Samitis and Gram Panchayats of their respective shares of such proceeds;(ii)the determination of the taxes, duties, tolls, rates and fees which may be assigned to or appropriated by the Zilla Parishads, the Anchal Samitis and the Gram Panchayats;(iii)the grants-in-aid to the Zilla Parishads, the Anchal Samitis and the Gram Panchayats from the consolidated Fund of the State;(b)the measures needed to improve the financial positions of the Zilla Parishads, the Anchal Samitis and the Gram Panchayats; or(c)any other matter refereed to the Finance Commission by the Governor in the Interest of sound finance of the Zilla Parishads, the Anchal Samitis and the Gram Panchayats.
