16th Finance Commission

16th Finance Commission

  1. In pursuance of clause (1) of Article 280 of the Constitution read with the provisions of the Finance Commission (Miscellaneous Provisions) Act, 1951 (33 of 1951), the President is pleased
  2. to constitute a Finance Commission with ArvindPanagariya, former Vice-Chairman, NITI Aayog and Professor, Columbia University, as the Chairman.
  3. RitvikRanjanamPandeyshall be the Secretary to the Commission.
  4. The Commission shall make its report available by 31st day of October, 2025 covering a period of five years commencing on the 1st day of April, 2026.

The Commission shall make recommendations as to the following matters, namely

  • (i) The distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under Chapter I, Part XII of the Constitution and the allocation between the States of the respective shares of such proceeds;
  • (ii) The principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India and the sums to be paid to the States by way of grants-in-aid of their revenues under article 275 of the Constitution for the purposes other than those specified in the provisos to clause (1) of that article; and
  • The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State on the basis of the recommendations made by the Finance Commission of the State.