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The State Finance Commission (SFC) is a constitutional body established under Article 243-I of the Constitution of India by the 73rd Constitutional Amendment Act, 1992, and Article 243-Y by the 74th Constitutional Amendment Act, 1992. It plays a vital role in strengthening democratic decentralization by ensuring the financial viability of Panchayats and Municipalities. Every State Government is required to constitute a State Finance Commission within one year of the commencement of these amendments and thereafter every five years. The Commission reviews the financial position of local bodies and ______ _______ ______ ___ __________ _______ __________.
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