The Tamil Nadu State Finance Commission makes recommendations on devolution of funds to PRIs.
The Tamil Nadu State Finance Commission is a statutory body constituted by the Government of Tamil Nadu to make recommendations on the devolution of funds to local bodies. The Commission was first constituted in 1994 and has been constituted every five years since then.
The Commission’s recommendations are binding on the State Government and are used to determine the amount of funds that are devolved to local bodies. The Commission’s recommendations are based on a number of factors, including the population of the local body, the level of development of the local body, and the revenue-raising capacity of the local body.
The Commission’s recommendations have been instrumental in improving the financial resources of local bodies in Tamil Nadu. The devolution of funds to local bodies has helped to improve the delivery of basic services to the people of Tamil Nadu.
The other options are incorrect because:
- The Taxation policies of the State Government are determined by the State Government. The State Finance Commission does not make recommendations on taxation policies.
- Central Government grants are allocated to the State Government by the Central Government. The State Finance Commission does not make recommendations on Central Government grants.
- Budget allocations are made by the State Government. The State Finance Commission does not make recommendations on budget allocations.