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State Finance Commission is appointed by a State Government every five years to determine:

AFinancial resources of the State for placing State’s requirement before the Union Government

BDevelopment requirements of the State for formulating State Five Year Plan

CBudgetary requirements of various departments of the State Government

DPattern of distribution of State’s tax revenue between the State Government and local bodies (both rural and urban) and the pattern of grants-in-aid to local bodies

Answer:

D. Pattern of distribution of State’s tax revenue between the State Government and local bodies (both rural and urban) and the pattern of grants-in-aid to local bodies

Read Explanation:

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