127A. District Planning Committee. -

(1) There shall be constituted in every district a District  Planning Committee to consolidate the plans prepared by the Panchayats and the Municipal  Corporations, Municipal Councils and Nagar Panchayats in the district and to prepare a draft  development plan for the district as a whole.  

(2) The District Planning Committee shall consist of such persons as may be prescribed by rules :  

Provided that not less than four-fifths of the total number of members of such committee  shall be elected by, and from amongst, the elected members of the Zila Panchayat and of the  Municipal Corporation, Municipal Councils and Nagar Panchayats in the district in proportion to  the ratio between the population of the rural areas and of the urban areas in the district :  

Provided further that the other members of such committee shall be nominated by the  State Government by order notified in the Official Gazette :  

Provided also that any vacancy of members shall be no bar to the constitution or  reconstitution of such committee.  

(3) The Chairperson of the District Planning Committee shall be chosen in such manner as may  be prescribed by rules.  

(4) The District Planning Committee, shall, in preparing the draft development plan, -  

(a) have regard to -  

(i) matters of common interest between the Panchayats and the Municipal Corporations,  Municipal Councils and Nagar Panchayats including spatial planning, sharing of water  and other physical and natural resources, the integrated development of infrastructure  and environmental conservations;  

(ii) the extent and type of available resources whether financial or otherwise;  

(b) consult such institutions and organizations as the Governor may, by order specify.  (5) The Chairperson of a District Planning Committee shall forward the development plan, as  recommended by such committee, to the State Government.  

127B. Preparation of plan. -

(1) The Executive officer of a municipality shall prepare every  year a development plan for the municipal area in the manner prescribed by rules. 

(2) The plan prepared under sub-section (1) shall be placed before the municipality in its meeting  and the municipality may approve it with or without modification.  

(3) The Executive Officer shall, after the plan is approved by the municipality send it to the  District Planning Committee before such date as may be prescribed by rules.  

127C. Finance Commission. -

(1) The Finance Commission shall also review the financial  position of the municipalities and make recommendations to the Governor as to, -  

(a) the principles which should govern -  

(i) the distribution between the State and the municipalities of the net proceeds of the  taxes, duties, tolls and fees leviable by the State which may be divided between them  and the allocation of shares of such proceeds to the municipalities;  

(ii) the determination of the taxes, duties, tolls and fees which may be assigned to, or  appropriated by, the municipalities;  

(iii) the grants-in-aid to the municipalities from the Consolidated Fund of the State;  

(b) the measures needed to improve the financial position of the municipalities; 

(c) any other matter referred to the finance commission by the Governor in the interests of  sound finance of the municipalities.  

(2) Every recommendation of the finance commission made under sub-section (1) shall, together  with an explanatory memorandum as to the action taken thereon, be laid before both the houses  of the State Legislature.