Question: What is the main purpose of the State Finance Commission?

Options:

1. To allocate funds to the Central Government
2. To review the financial position of the Panchayats
3. To conduct elections for the Panchayats
4. To manage state revenue

Correct Answer: To review the financial position of the Panchayats

Solution:

The main purpose of the State Finance Commission is to review the financial position of the Panchayats and make recommendations.