Here is the text of the Indian Constitution page no 144.
with respect to—
(i) the preparation of plans for economic
development and social justice;
(ii) the performance of functions and the
implementation of schemes as may be entrusted
to them including those in relation to the matters
listed in the Twelfth Schedule;
(b) the Committees with such powers and
authority as may be necessary to enable them to carry
out the responsibilities conferred upon them
including those in relation to the matters listed in the
Twelfth Schedule.
243X. The Legislature of a State may, by law,—
(a) authorise a Municipality to levy, collect and
appropriate such taxes, duties, tolls and fees in
accordance with such procedure and subject to such
limits;
(b) assign to a Municipality such taxes, duties, tolls
and fees levied and collected by the State Government
for such purposes and subject to such conditions and
limits;
(c) provide for making such grants-in-aid to the
Municipalities from the Consolidated Fund of the
State; and
(d) provide for constitution of such Funds for
crediting all moneys received, respectively, by or on
behalf of the Municipalities and also for the
withdrawal of such moneys therefrom,
as may be specified in the law.
243Y. (1) The Finance Commission constituted under
article 243-I 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,