Which constitutional provision mandates the establishment of a Finance Commission for states to review the financial position of panchayats and municipalities, an institution vital for fiscal devolution to rural bodies in Uttarakhand?

💡 Solution & Explanation

Article 243I requires the Governor of a State to constitute a Finance Commission every five years to review the financial position of panchayats and recommend principles for the distribution of taxes between the state and local bodies. Article 280 relates to the national Finance Commission constituted by the President. Other articles govern elections and official languages. State finance commissions ensure adequate revenue mobilization for grassroots developmental projects in hill districts.