sixteenth-finance-commission-submits-report-to-the-president

The 16th Finance Commission has submitted its report to the President of India, Droupadi Murmu, office of the President announced on Monday. 

The recommendations of the Sixteenth Finance Commission, which is chaired by renowned economist, Arvind Panagariya, would be applicable for a period of five years beginning April 1, 2026. 

“Members of the 16th Finance Commission, led by its Chairman, Dr. Arvind Panagariya, called on President Droupadi Murmu and submitted the Commission’s report for 2026-31,” the office of the President of India posted on X.

 

 

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The Finance Commission is tasked with recommending the basis for the distribution of taxes between the Centre and the states, including the break-up among the states. The 16th Finance Commission has also been mandated to recommend the principles that should govern the grants-in-aid transferred by the Centre to the states, as well as the measures needed to augment the funds of the states to supplement the resources of their panchayats and municipalities.

 

Also Read: Tenure of 16th Finance Commission extended

The Union Government had approved the terms of reference (ToR) for the 16th Finance Commission on November 29, 2024, and also asked the Commission to submit its report by October 31, 2025.