Highlight the procedures and powers of the State Finance Commission.
The State Finance Commission (SFC) is a constitutional body established under Article 243-I of the Indian Constitution, following the 73rd and 74th Constitutional Amendments. Its primary function is to recommend the distribution of financial resources between the state government and the local bodies, i.e., Panchayats and Municipalities. The procedures and powers of the State Finance Commission are crucial in strengthening the fiscal decentralization and financial autonomy of local governance institutions at the state and district levels.
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