New Delhi, Oct 14 — The government has extended the tenure of the 16th Finance Commission by one month, moving the deadline for submission of its report to November 30, the Finance Ministry said on Tuesday.
The 16th Finance Commission, constituted on December 31, 2023, is chaired by former Niti Aayog vice-chairman Arvind Panagariya. The panel was initially required to submit its report by October 31.
The commission, comprising four members, will make recommendations on tax distribution between the Centre and states for the five-year period beginning April 1, 2026. It is assisted by Secretary Ritvik Pandey, two joint secretaries, and one economic advisor.
Full-time members include retired bureaucrat Annie George Mathew and economist Manoj Panda, while SBI Group Chief Economic Advisor Soumya Kanti Ghosh and RBI Deputy Governor T Rabi Sankar serve as part-time members.
Besides tax devolution and revenue augmentation, the commission will review current arrangements for financing disaster management initiatives, referencing funds established under the Disaster Management Act, 2005.
The Finance Commission is a constitutional body that advises on Centre-state financial relations. The 15th Finance Commission, led by NK Singh, had recommended that states receive 41% of the divisible tax pool during 2021–22 to 2025–26, the same share suggested by the 14th Finance Commission under YV Reddy. (Agencies)
