With reference to the State Finance Commission as per the 73rd Constitutional Amendment, which of the following statements is/are correct? 1. It is constituted by the Governor every five years. 2. It recommends measures to improve the financial position of Panchayats. 3. The report of the Commission is placed before the State Legislature. 4. Its recommendations are binding on the state government. Select the correct answer using the code given below: |ForumIAS

[A] 1, 2 and 3 only

[B] 1 and 3 only

[C] 1, 2, 3 and 4

[D] 2, 3 and 4 only

Answer: A

Notes:

Explanation:

As per Article 243-I of the Constitution, the Governor of a state is mandated to constitute a State Finance Commission (SFC) every five years.
One of the primary functions of the SFC is to recommend measures to improve the financial position of Panchayats, including the distribution of taxes, duties, tolls, and fees between the state and Panchayats.
The report of the SFC is to be laid before the State Legislature, along with an action taken report by the state government.
The recommendations of the SFC are advisory in nature and not binding on the state government. The state may accept or reject them partially or fully.

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