Constitution of India · Section Article 243Y
Finance Commission
Article 243Y — Finance Commission
under article 243I shall also review the financial position of the Municipalities and make recommendations to the Governor as to—
- (a) the principles which should govern—
- (i) the distribution between the State and the Municipalities of
the net proceeds of the taxes, duties, tolls and fees leviable by the
State, which may be divided between them under this Part and the
allocation between the Municipalities at all levels of their respective
shares of such proceeds;
- (ii) the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the Municipalities;
- (iii) the grants-in-aid to Consolidated Fund of the State;
the
Municipalities
from
the
- (b) the measures needed to improve the financial position of the Municipalities;
- (c) any other matter referred to the Finance Commission by the Governor in the interests of sound finance of the Municipalities. (2) The Governor shall cause every recommendation made by the Commission under this article together with an explanatory memorandum as to the action taken thereon to be laid before the Legislature of the State.
Plain English Summary
This article deals with the Finance Commission, which reviews the financial health of local Municipalities and suggests ways to improve their finances. It helps decide how money collected by the State can be shared between the State and the Municipalities, and recommends measures to strengthen the financial position of these local bodies.
Key Points
- The Finance Commission reviews the financial situation of Municipalities.
- It makes recommendations on how taxes and fees should be distributed between the State and the Municipalities.
- It suggests measures to improve the financial standing of the Municipalities.
- It addresses any other financial matters referred to it by the Governor concerning the Municipalities' finances.
Why It Matters
This article ensures that local self-governing bodies (Municipalities) receive fair financial support and guidance to function effectively.
Landmark Judgements
No major landmark judgements.