Sixteenth Finance Commission Constituted

  • Constituted by the Government of India.
  • With the approval of the President of India.
  • According to Article 280(1) of the Constitution.
  • Dr Arvind Panagariya, former Vice-Chairman, NITI Aayog, and Professor, Columbia University will be the Chairman.
  • Members would be notified separately.
  • Mr Ritvik Ranjanam Pandey has been appointed as Secretary.

The Sixteenth Finance Commission Shall Make Recommendations As To The Following Matters, Namely:

  • The distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under Chapter I, Part XII of the Constitution and the allocation between the States of the respective shares of such proceeds;
  • The principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India and the sums to be paid to the States by way of grants-in-aid of their revenues under Article 275 of the Constitution for purposes other than those specified in the provisos to clause (1) of that article; and
  • The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State based on the recommendations made by the Finance Commission of the State.
Posted in Current Affairs.