First Meeting of 16th FC Held Under C’ship of Dr. Arvind Panagariya

Utkarsh Classes Last Updated 15-02-2024

First Meeting of 16th FC Held Under C’ship of Dr. Arvind Panagariya

Banking and Finance 3 min read

Under the Chairmanship of Dr. Arvind Panagariya, the first meeting of the 16th Finance Commission (XVI-FC) was held in Jawahar Vyapar Bhawan, Janpath, New Delhi.

Arvind Panagariya was appointed as Chairman along with four members of the 16th Finance Commission. He was earlier vice chairperson of NITI Aayog.

Members of Finance Commission are:

A.N. Jha was former expenditure secretary and also served as member of the 15th Finance Commission
Annie George Mathew, special secretary of the department of expenditure
The State Bank of India's Soumya Kanti Ghosh, group chief economic advisor
Niranjan Rajadhyaksha, Executive Director of Artha Global

About 16th Finance Commission

The commission will report the distribution of the Centre’s tax revenue to states for the next five years, starting in Financial Year 2027.
The Finance Commission will submit its report by October 31, 2025, covering five years from April 1, 2026.
Earlier President Droupadi Murmu approved a notification which stated that the Chairman and other members of the Commission will hold their office from the date they assume their respective positions which will last until the submission of the report or October 31, 2025, whichever is earlier.
The 16th Finance Commission will ensure that the states have sufficient financial resources.
The 16th Finance Commission will suggest steps to augment the consolidated funds of the states for panchayats and municipalities.
Moreover, it will also review funds for national and state disaster management.
The government has kept the 'terms of reference' of the commission short, providing the 16th Finance Commission with the flexibility to make recommendations on tax revenue sharing within constitutional limits.

About Finance Commision

According to Article 280 of the Constitution the Finance Commission is constituted by the President every five years or earlier.
It usually takes the commission about two years to create their recommendations.
K.C. Neogy was Chairman of the First Finance Commission.
The Fifteenth Finance Commission was headed by Shri. N.K. Singh.