Indian Polity · Local Self Government
The State Finance Commission, constituted under Article 243-I of the Constitution, makes recommendations to the Governor regarding the distribution of net proceeds of taxes between:
- 1The Municipal Corporations and private infrastructure developers
- 2Neighboring State Governments for regional development
- 3The State Government and the Panchayats/Local bodies✓
- 4The Union Government and the State Government
Correct answer
The State Government and the Panchayats/Local bodies
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