Finance Commission to recommend tax distribution, grants in aid and measures to augment state funds for local bodies. The Finance Commission, appointed by the President with a Chairman and four members and subject to Parliamentary qualification rules, must recommend distribution of net tax proceeds between the Union and States, allocation among States, principles for grants in aid from the Consolidated Fund, and measures to augment State Consolidated Funds to supplement Panchayat and Municipality resources; it also considers other presidential references and determines its procedure, exercising powers Parliament may confer.