The government of India has appointed Dr Arvind Panagariya, former Vice-Chairman, NITI Aayog, and Professor, Columbia University as the new Chairman for the 16th Finance Commission.
Apart from it, Ritvik Ranjanam Pandey has been appointed as Secretary to the Commission.
The 16th Finance 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 previous to clause (1) of that article; and
(iii) 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.
The Commission is expected to make its report available by 31st October, 2025, covering a period of five years commencing on 1st April, 2026.
