State Finance Commission is appointed by a State Government every five year to determine:

• A. Financial resources of the State for placing State’s requirements before the Union Government.
• B. Development requirements of the State for formulating State Five Year Plan.
• C. Budgetary requirements of various departments of the State Government.
• D. Pattern of distribution of State’s tax revenue between the State Government and Local Bodies (both rural and urban) and the pattern of Grants-in-aid to Local Bodies.