The financial powers and functions of the governor are:

  1. Seeing that the Annual Financial Statement (state budget) is laid before the state legislature.
  2. Money bills can be introduced in the state legislature only with his/her prior recommendation.
  3. No demand for a grant can be made except on his/her recommendation.
  4. Making advances out of the Contingency Fund of the state to meet unforeseen expenditure.
  5. Constituting a finance commission every five years to review the financial position of panchayats and municipalities.