Indian Polity · Local Self Government
The State Finance Commission constituted under Article 243I of the Constitution of India recommends principles governing the:
- 1Financial relations between the President and Prime Minister
- 2Allocation of financial grants between the Centre and Municipalities
- 3Distribution of net proceeds of taxes between the State and Panchayats✓
- 4Distribution of net proceeds of taxes between the Centre and States
Correct answer
Distribution of net proceeds of taxes between the State and Panchayats
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