The Sixteenth Finance Commission (XVI-FC) held its first meeting under the Chairmanship of Dr. Arvind Panagariya in New Delhi today.
The commission discussed its terms of reference and also acknowledged the need for wide ranging consultations with various stakeholders, including state governments, local bodies, ministries of government of India, and experts, said in a release from the ministry of finance.
“The commission recognised that it will be carrying out detailed analytical work and would require to rope in all the expertise that it can garner, including that from leading research organisations, leading think tanks and other organisations working in the area of fiscal federal relations,” the ministry said in the release.
It may be noted that the sixteenth finance commission will make its recommendations available by 31st October, 2025, covering an award period of five years commencing 1st April, 2026.
It may be noted that the union cabinet had approved the terms of reference for the Sixteenth Finance Commission in November last year, which include, distribution of the net proceeds of taxes between the Centre and the states and the allocation between the states of the respective shares of such proceeds, the principles, grants-in-aid and the revenues of the states along with measures needed to supplement the resources of the panchayats.
Present arrangements on financing Disaster Management initiatives, concerning the funds constituted under the Disaster Management Act, 2005 (53 of 2005), is also likely to be reviewed by the commission with suitable recommendations on the same.
Former expenditure secretary Ajay Narayan Jha, former special secretary Annie George Mathew, and Niranjan Rajadhyaksha, executive director, Artha Global have been appointed as full time members while State Bank of India Group Chief Economic Advisor Soumya Kanti Ghosh has been appointed as the part-time member of the Commission.
