Section 100-A

(1) It shall be the duty of the Finance Commission to review the financial position of Grama Panchayats and to make recommendations to the Governor as required under Article 243-I of the Constitution. (2) The Finance Commission may, for the purpose of maintaining sound financial position of Grama Panchayats, make such recommendations including measures needed for improvement of the financial position thereof, as it may deem fit. (3) The Governor shall cause every such recommendations made by the Finance Commission together with an explanatory memorandum as to the action taken thereon to be laid before the Legislative Assembly.