State Finance Commission

The 73rd Amendment also requires every State government to appoint a State Finance Commission once every five years. This Commission's job is to examine the financial position of local governments within the State, and to review how revenue is divided between the State government and local governments on one hand, and between rural and urban local governments on the other. The point of building this into the Constitution is to take the allocation of funds to rural local bodies out of the realm of day-to-day po …