The Finance Commission of Andhra Pradesh plays a role in:

The correct answer is: a) Allocating resources between the state and local bodies.

The Finance Commission of Andhra Pradesh is a statutory body constituted by the Government of Andhra Pradesh to review the financial position of the state and to make recommendations to the government on the distribution of financial resources between the state and local bodies. The Finance Commission is also responsible for reviewing the tax policies of the state and to make recommendations to the government on the need for changes in the tax structure.

The Finance Commission is constituted by the Governor of Andhra Pradesh and consists of a Chairman and four members. The Chairman is a retired judge of the Supreme Court or the High Court of Andhra Pradesh. The members are experts in the fields of finance, economics, and public administration.

The Finance Commission is required to submit its report to the government within a period of six months from the date of its constitution. The government is required to consider the recommendations of the Finance Commission and to take appropriate action.

The Finance Commission plays an important role in the financial management of the state. The recommendations of the Finance Commission help the government to allocate resources in a fair and equitable manner. The recommendations of the Finance Commission also help the government to improve its tax policies.

The other options are incorrect because:

• Option b) is incorrect because the Finance Commission is not responsible for preparing the state budget. The state budget is prepared by the Finance Department of the Government of Andhra Pradesh.
• Option c) is incorrect because the Finance Commission is not responsible for monitoring fiscal performance. The fiscal performance of the state is monitored by the Finance Department of the Government of Andhra Pradesh.
• Option d) is incorrect because the Finance Commission is not responsible for reviewing tax policies. The tax policies of the state are reviewed by the Finance Department of the Government of Andhra Pradesh.