NEW DELHI, Feb 1: Finance Minister Nirmala Sitharaman on Sunday tabled the 16th Finance Commission report in the Lok Sabha, outlining the framework for tax revenue devolution between the Centre and states for the period 2026–2031.
The Finance Commission, a constitutional body, recommends the formula for sharing central taxes with states. However, cesses and surcharges levied by the Centre do not form part of the divisible pool.
The 16th Finance Commission, chaired by former NITI Aayog Vice-Chairman Arvind Panagariya, was constituted on December 31, 2023. Its members include retired bureaucrat Annie George Mathew, economist Manoj Panda, SBI Group Chief Economic Advisor Soumya Kanti Ghosh, and RBI Deputy Governor T. Rabi Sankar, with Ritvik Pandey serving as Secretary to the Commission.
The Commission submitted its report to President Droupadi Murmu on November 17, 2025. (Agencies)
