Section 114(1) in Jharkhand Panchayat Raj Act, 2001
(1)The State Government may as soon as possible and thereafter on the expiration of every five years, constitute a Finance commission in the prescribed manner to review the financial position of the Gram Panchayats, Panchayat Samitis and Zila Parishads and to give advice and make recommendations to the Government on financial matters, which will make recommendations on the following matters -(a)The Principles which should govern -(i)The distribution between the State and the Zila Parishads, Panchayat Samitis and Gram Panchayat of the net proceeds of the taxes, duties, tolls and fees be leviable by the Government and distribution among the Zila Parishads, Panchayat Samitis and Gram Panchayats of such proceeds proportionately;(ii)The determination of the taxes, duties and fees which may be assigned to or appropriated by the Zila Parishads, Panchayat Samitis and Gram Panchayats;(iii)The Grants-in-aid to Zila Parishads, Panchayat Samites and Gram Panchayats from the consolidated fund of the State;(b)The measures needed to improve the financial position of the Zila Parishads, Panchayat Samitis and Gram Panchayats;(c)Any other matter referred to the financial commission by the Governor in the interest of sound finance of the Zila Parishads, Panchayat Samitis and Gram Panchayats;
