Question

Which of the following provisions are correct in regards to the finances in the 73rd Constitutional Amendment Act?

1.    The state legislature may authorize a panchayat to levy, collect and appropriate taxes, duties, tolls and fees.

2.    The state legislature may assign to a panchayat taxes, duties, tolls and fees levied and collected by the state government.

3.    The state legislature may provide for making grants-in-aid to the panchayats from the consolidated fund of the state.

4.    The state legislature may provide for the constitution of funds for crediting all money of the panchayats.