Indian Polity · Polity
The State Finance Commission constituted under Article 243I makes recommendations to the Governor primarily on the principles governing:
- 1The borrowing limits of municipal corporations
- 2The direct allocation of central funds to individual villages
- 3The distribution of net proceeds of taxes between the State and the Panchayats✓
- 4The reduction of public debt of the State Government
Correct answer
The distribution of net proceeds of taxes between the State and the Panchayats
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