Question

Article 243ZA–ZH (various follow-up articles) of the Constitution relate to Panchayat finance. Which of the following is constitutionally mandated about State Finance Commissions (SFCs) under Article 243-I?

A They must be set up by the President.
B States must constitute an SFC every five years to review the financial position of Panchayats and recommend measures for devolution of funds, functions and functionaries.
C SFC recommendations are binding and cannot be altered by the State Legislature.
D SFCs are optional advisory committees created only on request from Panchayats.
E SFCs are part of the Finance Commission.
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