The correct answer is (a) Governor.
The State Finance Commission is constituted by the Governor of the state. The Commission is responsible for reviewing the financial position of the Panchayats in the state and making recommendations to the government on the devolution of financial resources to the Panchayats.
The Commission consists of a Chairman and four members, who are appointed by the Governor. The Chairman is a person who has had experience in public finance or administration. The members are drawn from the fields of finance, administration, law, and social work.
The Commission has to submit its report to the Governor within a period of one year from the date of its constitution. The report of the Commission is placed before the State Legislature and the government takes appropriate action on the recommendations of the Commission.
The State Finance Commission is an important institution for the devolution of financial resources to the Panchayats. The recommendations of the Commission help to strengthen the financial position of the Panchayats and enable them to provide better services to the people.
The other options are incorrect because:
(b) The Chief Minister is the head of the executive of the state. He/She is not responsible for constituting the State Finance Commission.
(c) The Home Minister is responsible for the maintenance of law and order in the state. He/She is not responsible for constituting the State Finance Commission.
(d) The Finance Minister is responsible for the management of the state’s finances. He/She is not responsible for constituting the State Finance Commission.