Constitution of the Sixteenth Finance Commission

• 01 Jan 2024

The Government of India, in adherence to Article 280(1) of the Constitution, has established the Sixteenth Finance Commission, appointing Dr. Arvind Panagariya, former Vice-Chairman of NITI Aayog and Professor at Columbia University, as its Chairman.

• Specific terms of reference have been outlined, including the distribution of tax proceeds between the Union and States, principles governing grants-in-aid to States, and measures to bolster State funds for local bodies like Panchayats and Municipalities.
• The Commission has also been tasked with reviewing disaster management financing arrangements under the Disaster Management Act, 2005, and making recommendations for improvements.
• The Commission has been requested to make its report available by 31^st October, 2025.

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