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Correct Option is 1 and 3

73RD AMENDMENT ACT OF 1992 It has added a new Part-IX to the Constitution of India. This part is entitled as ‘The Panchayats’ and consists of provisions from Articles 243 to 243 O. In addition, the act has also added a new Eleventh Schedule to the Constitution. This schedule contains 29 functional items of the panchayats. It deals with Article 243-G. State Finance Commission (Article 243-I) The governor of a state shall after every five years constitute a finance committee to review the financial position of the panchayats. 1. The distribution between the state and the panchayats of the net proceeds of the taxes, duties, tolls, and fees levied by the state. 2.The determination of taxes, duties, tolls, and fees that may be assigned to the panchayats. 3.Grants-in-aid to the panchayats from the consolidated fund of the state. The state legislature may provide for the composition of the commission, the required qualifications of its members and the manner of their selection Hence statements 1 and 3 are incorrect and statement 2 is correct.

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