Home The Constitution Part IXA Article 243Y

Art. 243Y Part IXA: The Municipalities

Finance Commission

Exact text — Constitution of India

(1) The Finance Commission constituted under article 243-I shall also review the financial position of the Municipalities and make recommendations to the Governor as to—(a) the principles which should govern... the distribution between the State and the Municipalities of the net proceeds of the taxes, duties, tolls and fees leviable by the State... (b) the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the Municipalities... (c) the grants-in-aid to the Municipalities from the Consolidated Fund of the State...

In Plain English

What this Article actually means

Rather than creating a separate body, this Article gives the SAME State Finance Commission established under Article 243-I (for Panchayats) the additional job of reviewing Municipalities' financial position too — a single, unified Commission covering both rural and urban local government finance every 5 years.

Why This Matters To You

How it shows up in everyday life

This is why a single State Finance Commission's periodic report typically addresses both your Panchayat's and your Municipal Corporation's revenue-sharing needs together, rather than two entirely separate review processes.

Read alongside this one

Art. 243-i — Constitution of Finance Commission — Panchayats

Frequently Asked

Quick answers about Article 243Y

Is there a separate Municipal Finance Commission distinct from the Panchayat one?

No — this Article specifically directs the same Commission created under Article 243-I to handle both, avoiding duplicate institutional machinery.

← PreviousArticle 243X: Power to Impose Taxes by, and Funds of, the Municipalities Next →Article 243Z: Audit of Accounts of Municipalities

The text above reproduces Article 243Y of the Constitution of India as amended to date, for general educational reference. It is public-domain legislative text, but we recommend cross-checking the authoritative version at legislative.gov.in or india.gov.in before relying on it for a legal matter. The explanation, examples and FAQs are general information, not legal advice — consult a qualified advocate for guidance on your specific situation.