120A. [ Review of finance. [Inserted vide Orissa Act No. 11 of 1994 w.e.f. 31.5.1994.]
(1)It shall be the duty of the Finance Commission to review the financial position of Municipalities and to make recommendations to the Governor as to -(a)the principles which would govern-(i)the distribution between the State and the Municipalities of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them and the allocation between the Municipalities at all levels of their respective shares of such proceeds;(ii)the determination of the taxes, duties, tolls and the fees which may be assigned to, or appropriate by, the Municipalities; and(iii)the grants-in-aid to the Municipalities from the Consolidated Fund of the State.(b)the measures needed to improve the financial position of the Municipalities; and(c)any other matter referred to the Finance Commission by the Governor in the interest of sound finance of the Municipalities.(2)The Governor shall cause every recommendation made by the Finance Commission under Sub-section (1) together with an explanatory memorandum as to the action taken thereon to be laid before the Legislative Assembly.]Chapter-XII Property
