(1) The State Finance
Commission shall 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 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; and
(iii) the grants-in-aid to the Municipalities from the
Consolidated Fund of the State;
(b) the measures needed to improve the financial
position of the Municipalities; and
(c) any other matter referred to the State Finance
Commission in the interest of sound finances of the
Municipality.
(2) Every recommendation made by the State Finance
Commission together with an explanatory memorandum as to the
action taken thereon shall be laid before the State Legislature.
advertisement