16th Finance Commission
Role and Significance
The Finance Commission is a constitutional body under Article 280 of the Indian Constitution, constituted every five years to recommend the distribution of tax revenues between the Centre and States, and among States themselves. The 16th Finance Commission was constituted in December 2023 under the chairmanship of Arvind Panagariya and covers the period 2026–31.
- The Commission determines the vertical devolution (Centre-to-States share of the divisible pool of taxes) and horizontal devolution (inter-State distribution formula)
- The 15th Finance Commission (2021–26), under N.K. Singh, maintained the States' share of central taxes at 41%
- The 16th Commission submitted its report in late 2025; its recommendations will govern fiscal federalism in India through 2031
- Arvind Panagariya is a Columbia University professor and served as the first Vice-Chairman of NITI Aayog (2015–2017)
● Tracked since March 05, 2026 · last seen May 22, 2026 · updates as the daily brief publishes
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