Under the Constitution of India, who among the following constitutional authorities is mandated to constitute a State Finance Commission every five years to review the financial position of local bodies in the state?
- The Governor of the StateAnswer
- BThe Chief Minister of the State
- CThe Speaker of the State Legislative Assembly
- DThe Comptroller and Auditor General of India
Answer
The Governor of the State
Under Articles 243-I and 243-Y of the Constitution of India, the Governor of a state is constitutionally mandated to constitute a State Finance Commission every five years. The commission makes recommendations regarding the distribution of net tax proceeds between the State and local governance bodies (Panchayats and Municipalities).
Step-by-Step Solution
Key Concept
Establishment and composition of the State Finance Commission