(1)The Governor shall as soon as may be within one year from the commencement of the Constitution (Seventy third) Amendment Act, 1992, and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the Zilla Parishads, the Panchayat Samitis and the Gram Panchayats and to make recommendation to the Governor as to -(a)the principles which should govern -(i)the distribution between the State and the Zilla Parishads, to Panchayat 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 of their respective shares of such proceeds :(ii)the determination of the taxes, duties, tolls, rates and fees which may be assigned to or appropiated by the Zilla Parishads, the Panchayat Samitis and the Gram Panchayats ;(iii)the grants-in-aid to the Zilla Parishads, the Panchayat Samitis and the Gram Panchayats from the Consolidated Fund of the State :(b)the measures needed to improve the financial position of the Zilla Parishads, the Panchayat Samitis and the Gram Panchayats ; or(c)any other matter referred to the Finance Commission by the Governor in the interest of sound finance of the Zilla Parishads, the Panchayat Samitis and the Gram Panchayats.
