Construction of Finance Commission.

(1) The Finance Commission constituted under section 186 of the Andaman and Nicobar Islands (Panchayats) Regulation, 1994, shall review the financial position of the Municipalities and make recommendations to the President as to, (a) the principles which should govern, (i) the determination of taxes, duties, tolls and fees which may assigned to or appropriated by the Municipalities; (ii) the grants-in-aids to the Municipalities from the Consolidated Fund of India; (b) the measures needed to improve the financial position of the Municipalities: (c) any other matter referred to the Finance Commission by the President in the interest of sound finances of the Municipalities.