Question

Which institution, established under the 73rd and 74th Amendments, is responsible for reviewing the financial position of local self-governments and making recommendations?

• A. District Planning Committee
• B. State Finance Commission
• C. Gram Sabha
• D. Panchayat Raj Institution

Answer 1

Answer:

B. State Finance Commission

• The State Finance Commission, constituted every five years, plays a critical role in fiscal decentralization by reviewing the financial health of local bodies and recommending the distribution of taxes, duties, and grants-in-aid between the state and local governments.