The State Finance Commission in Maharashtra is responsible for:

The correct answer is: Recommending the devolution of funds to Panchayats.

The State Finance Commission (SFC) is a body constituted by the state government to recommend the devolution of funds to Panchayats. The SFC is constituted every five years and its recommendations are binding on the state government. The SFC takes into account the following factors while making its recommendations:

• The financial needs of the Panchayats
• The revenue-raising capacity of the Panchayats
• The state government’s fiscal position

The SFC’s recommendations are important as they determine the level of financial resources available to the Panchayats. This, in turn, affects