16th Finance Commission Submits Report to President of India

The 16th Finance Commission (XVIFC), constituted under Article 280(1) of the Constitution, has submitted its report to the President of India. The Commission is headed by Chairman Dr. Arvind Panagariya.

Members of the XVIFC

• Chairman: Dr. Arvind Panagariya
• Members:
  • Smt. Annie George Mathew
  • Dr. Manoj Panda
  • Shri T. Rabi Sankar
  • Dr. Soumyakanti Ghosh
• Secretary: Shri Ritvik Pandey

Mandate and Terms of Reference (ToR)

• The XVIFC was tasked with making recommendations for a five-year period starting 1st April 2026.
• Key responsibilities include:
  • Distribution of net tax proceeds between the Union and States.
  • Allocation of shares among States.
  • Grants-in-aid to States.
  • Reviewing financing arrangements for disaster management initiatives.

Significance

• The Finance Commission plays a crucial role in fiscal federalism, ensuring equitable distribution of resources between the Centre and States.
• Its recommendations influence budgetary planning, revenue sharing, and disaster preparedness funding for the next five years.

Source: PIB