The main function of M.P. State Finance Commission is-
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Under Article 243 (I) of the
Constitution, provision has been made by the M.P.
State Finance Commission Act-1994 to review the
economic status of Panchayat and to determine the
principles of dividing state economic resource in
between state and local bodies, in such a way that
the local bodies can function effectively without
economic hurdles. It also allocates the taxes to be
handed over to these bodies.