The Union Cabinet, chaired by Prime Minister Narendra Modi, sanctioned the creation of three posts at the Joint Secretary level—two posts of Joint Secretary and one post of Economic Adviser—for the 16th Finance Commission. According to an official statement, these newly established positions are necessary to support the Commission in executing its functions, while all other posts in the commission have already been created as per the delegated powers.
In a notification dated December 31, 2023, the government appointed Arvind Panagariya, the former vice chairman of Niti Aayog, as the chairman of the 16th Finance Commission. Ritvik Ranjanam Pandey was named as the Secretary to the Commission.
The Commission is slated to submit its report to the President by October 31, 2025, covering a five-year period commencing April 1, 2026. In addition to recommending tax devolution between the Centre and States and proposing revenue augmentation measures, the Commission will review the current arrangements for financing disaster management initiatives concerning the funds constituted under the Disaster Management Act, 2005.
The Finance Commission, a constitutional body, provides suggestions on center-state financial relations. The previous 15th Finance Commission, under N.K. Singh, recommended that states receive 41 per cent of the divisible tax pool of the Centre during the five-year period from 2021-22 to 2025-26, consistent with the recommendation of the 14th Finance Commission.
(With PTI inputs)
READ MORE: Sensex falls for third straight session by 314 points, Nifty down 0.51 per cent to 21,462
