Section 127C(1)(a) in The U.P. Municipalities Act, 1916
(a)the principles which should 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 of shares of such proceeds to the municipalities;(ii)the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the municipalities;(iii)the grants-in-aid to the municipalities from the Consolidated Fund of the State;