Section 302B in Karnataka Municipalities Act, 1964
302B. Finance Commission.
(1)The Finance Commission constituted under section 267 of the Karnataka Panchayat Raj Act, 1993 shall also review the financial position of the municipal councils and Town Panchayats and make recommendations to the Governor as to,-(a)the principle which should govern, -(i)the distribution between the State and Municipal Council and Town Panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the Government which may be divided between them and allocation between the municipal councils and town panchayats their respective shares of such proceeds;(ii)the determination of the taxes, duties, tolls, fees which may be assigned to or appropriated by the municipal councils and Town Panchayats;(iii)the grant-in-aid to the municipal councils and town panchayats from the consolidated fund of the State;(b)the measures needed to improve the financial position of the municipal councils and town panchayats;(c)any other matter referred to the Finance Commission by the Governor in the interest of sound finance of the municipal councils and town panchayats.(2)The Governor shall cause every recommendation made by the Commission under this section together with an explanatory memorandum as to the action taken thereon to be laid before both the Houses of the State Legislature.]Chapter-XII Control
