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    Question

    As per Article 243H of the Constitution of India, which

    of the following powers does the State Legislature have regarding Panchayat finances? 
    A The power to authorize Panchayats to levy taxes, subject to conditions and limits specified by law Correct Answer Incorrect Answer
    B The power to assign certain state-level taxes and fees to Panchayats Correct Answer Incorrect Answer
    C The power to provide grants-in-aid from the Consolidated Fund of the State Correct Answer Incorrect Answer
    D The power to constitute separate funds for crediting and withdrawing Panchayat moneys Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Article 243H enumerates all these powers under clauses (a), (b), (c), and (d). Clause (a) authorizes Panchayats to "levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits"; clause (b) allows assignment of state-level taxes to Panchayats; clause (c) permits grants-in-aid from the State's Consolidated Fund; and clause (d) provides for constitution of funds for crediting and withdrawing moneys. This comprehensive framework ensures fiscal decentralization and financial autonomy for Panchayats as institutions of self-government, enabling them to generate independent revenue for local governance and development activities.

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