16th Finance Commission Full Information In English | 16th Finance Commission 

16th Finance Commission 

Established: 31 December 2023

Chairman: Arvind Panagariya

Secretary: Ritwik Ranjan Pandey

Other members: Ajay Narayan Jha (Member of 15th Finance Commission and Secretary of 14th Finance Commission), Annie George Mathew and Manoj Panda (Former Director of 'Institute of Economic Growth') are full-time members and Saumya Kanti Ghosh (Chief Economic Advisor, SBI) is the only part-time member.

Deadline for submission of recommendations is 31 October 2025

Period of implementation of the recommendations of the Commission: 1 April 2026 to 31 March 2031

The Sixteenth Finance Commission will make recommendations on the following matters:

Distribution between the Centre and the States of the net proceeds of taxes which are or may be divided under Chapter 1, Part 12 of the Constitution and the distribution of such respective shares among the States.

The principles governing and implementing the provisions of the Constitution, other than the purpose specified in clause 1 of this article, in respect of the grants of revenue to the States from the Consolidated Fund of the Union and the amounts made to the States by way of grants of revenue under Article 275.

Measures necessary to augment the Consolidated Fund of the States in a manner that will complement the resources of the Panchayats and Municipalities of the State on the basis of the recommendations made by the State Finance Commission.

About Arvind Panagariya :

Born: 30 Sep. 1952 - Bhilwara (Rajasthan)

He is a Professor of Economics at Columbia University, USA.

He was previously the Chief Economist of the Asian Development Bank (ADB).

He served as the First Vice Chairman of the NITI Aayog from January 2015 to August 2017.

He also served as India's Sherpa to the G-20 in 2017.

He was appointed as the Chancellor of Nalanda University in April 2023.

Awards received: Padma Bhushan (2012)

About Ritwik Pandey:

He is a 1998 batch IAS officer of Karnataka cadre.

He is currently serving as Officer on Special Duty (OSD) in the Department of Economic Affairs as Additional Secretary (Equivalent).

Advance Cell of the 16th Finance Commission:

Establishment: 21 November 2022

Purpose: This cell has been set up to oversee the preparatory work till the formal establishment of the Commission.

(Note: Dr. Niranjan Rajadhyaksha, Executive Director of 'Global Earth' and former Executive Editor of the financial daily Mint, has become the fourth Marathi economist to represent the Commission as a full-time member of the 16th Finance Commission. Earlier, Dhananjay Gadgil and Vijay Kelkar have held these responsibilities, while former Union Finance Minister and Maharashtra Chief Minister Yashwantrao Chavan also held responsibility in the Finance Commission.)

Important information about the Finance Commission:

Finance Commission: (Section = 280)

Section 280: - The President appoints the Finance Commission every 5 years/before that if necessary.

Finance Commission - is an independent quasi-judicial expert body.

This is the same as the Finance Commission in Australia.

What is it called: 'Balancing wheel of fiscal federalism'.

Members: 4 + 1 - (Chairman)

Eligibility:

Must be qualified to become a judge of the Supreme/High Court.

Should be a specialist in financial matters in government departments.

Experience = Financial and administrative matters.

Should have specialized knowledge in economics.

According to Article 280 (1) of the Constitution of India, the President constitutes a Finance Commission every five years or whenever necessary for the division of financial resources between the Centre and the States.

Till now, a total of 16 Finance Commissions have been constituted in India.

This Commission was first established by Dr. Babasaheb Ambedkar in 1951.

It is a constitutional and quasi-judicial body.

This Commission consists of a Chairman and four members, two of whom are full-time and two are part-time members.

Chairman of the First Finance Commission: K.C. Niyogi

Chairman of the 15th Finance Commission: N.K. Singh,