The correct answer is A) Allocating funds to Panchayats.
The State Finance Commission (SFC) is a statutory body constituted by the State Government to review the financial position of the Panchayats and to make recommendations to the Government on the principles that should govern the distribution of financial resources between the State and the Panchayats. The SFC also makes recommendations on the measures that should be taken to improve the financial management of the Panchayats.
The SFC is constituted by a Chairman and four members, who are appointed by the Governor of the State. The Chairman and members of the SFC are appointed from among persons who have special knowledge or experience in finance, economics, law, public administration or rural development.
The SFC has to submit its report to the Government within a period of one year from the date of its constitution. The Government is required to consider the recommendations of the SFC and to take appropriate action within a period of six months from the date of receipt of the report.
The SFC plays a vital role in ensuring that the Panchayats have adequate financial resources to carry out their functions. The recommendations of the SFC are also helpful in improving the financial management of the Panchayats.
The other options are incorrect because:
- B) Auditing Panchayat accounts is the responsibility of the State Audit Department.
- C) Training Panchayat members is the responsibility of the State Institute of Rural Development.
- D) Resolving disputes between Panchayats is the responsibility of the State Election Commission.