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Arvind Panagariya Appointed Chairman of 16th Finance Commission

  • 03 Jan 2024

On 31st December, 2023, former NITI Aayog Vice Chairman, Arvind Panagariya, was appointed as the Chairman of the 16th Finance Commission by the Central government, with Ritvik Ranjanam Pandey assigned as the Commission's secretary.

Key Points

  • Chairmanship and Commission Duration: The notification outlines the tenure of the Chairman and members of the Commission, specifying their term up to the submission of the report or until October 31, 2025.
  • Commission's Mandate: It highlights the Commission's mandate, focusing on 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 governing bodies.
  • Review on Disaster Management Financing: Additionally, the Commission is mandated to review the financing of Disaster Management initiatives and make appropriate recommendations.
  • Report Deadline and Terms of Reference: The Commission is directed to present its report by October 31, 2025, covering a five-year period from April 1, 2026. The Terms of Reference, approved by the Union Cabinet, emphasize the distribution of tax proceeds and principles governing grants-in-aid to States.
  • Commission's Composition: The notification indicates that the members of the Commission will be separately notified.
  • Constitutional Basis: The Finance Commission operates under Article 280 of the Indian Constitution.