The correct answer is (c), The Governor of the concerned State.
The Finance Commission is constituted by the Governor of the concerned State. The Finance Commission is a statutory body constituted by the State Government to review the financial position of 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 Finance Commission consists of a Chairman and four other members, who are appointed by the Governor. The Chairman is a person who has had experience in public affairs or in finance or accountancy. The other members are persons who have had experience in administration, finance, law, or accountancy.
The Finance Commission has to submit its report to the Governor within a period of six months from the date of its constitution. The report of the Finance Commission is placed before the State Legislature and the State Government has to take appropriate action on the recommendations of the Finance Commission.
The Finance Commission plays an important role in ensuring that the Panchayats have adequate financial resources to carry out their functions. The recommendations of the Finance Commission are binding on the State Government.