The correct answer is (a) Governor.
The State Finance Commission is constituted by the Governor of the state. The Commission is responsible for reviewing the financial position of the Panchayats and making recommendations to the government on the devolution of financial resources to the Panchayats.
The Commission consists of a Chairman and four members, who are appointed by the Governor. The Chairman is a person who has experience in public finance or administration. The members are experts in the fields of economics, law, public administration, and rural development.
The Commission has to submit its report to the Governor within a period of one year from the date of its constitution. The Governor is required to place the report before the State Legislature within a period of six weeks from the date of its receipt. The State Legislature may adopt, reject, or modify the recommendations of the Commission.
The State Finance Commission is an important institution for ensuring the financial autonomy of the Panchayats. The Commission’s recommendations help to improve the financial resources of the Panchayats and enable them to provide better services to the people.
The other options are incorrect because:
(b) The Chief Minister is the head of the executive branch of the state government. He/She is not responsible for constituting the State Finance Commission.
(c) The Home Minister is responsible for the state’s internal security. He/She is not responsible for constituting the State Finance Commission.
(d) The Finance Minister is responsible for the state’s finances. He/She is not responsible for constituting the State Finance Commission.