Finance Commission
Constitutional Basis and Mandate
The Finance Commission is a constitutional body established under Article 280 of the Indian Constitution. It is constituted every five years (or earlier) by the President of India to recommend the distribution of net proceeds of taxes between the Union and the States (vertical devolution) and the allocation among the states (horizontal devolution). The 16th Finance Commission is chaired by Dr. Arvind Panagariya (former Vice-Chairman, NITI Aayog). Its recommendations cover the period 2026–27 to 2030–31 and are tabled in Parliament alongside the Union Budget.
- Article 280: provides for the Finance Commission's constitution, composition, and functions.
- Finance Commission submits recommendations on: (a) tax devolution, (b) grants-in-aid to states, (c) measures to augment state consolidated funds.
- The Commission is a recommendatory body — its recommendations are not binding but are generally accepted by the Union government.
- 16th Finance Commission chairman: Dr. Arvind Panagariya.
- Recommendations apply from April 1, 2026 to March 31, 2031.
● Tracked since February 02, 2026 · last seen August 07, 2026 · updates as the daily brief publishes
07 Aug '26
Tamil Nadu Assembly adopts unanimous resolution on fair share of Central tax devolution
Economics
22 Jun '26
Reclaiming Tamil Nadu’s fiscal autonomy and sustaining its growth model
Polity & Governance
22 May '26
States to get VB-G RAM G funds based on the Finance Commission formula
Polity & Governance
Polity & Governance
Divisible Pool
Polity & Governance
Vertical and Horizontal Devolution
Polity & Governance
Panchayati Raj Institutions
Polity & Governance
Cooperative Federalism vs. Competitive Federalism
Polity & Governance
Fiscal Federalism
Polity & Governance
Planning Commission vs. NITI Aayog
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