16th Finance Commission submitted its report for the year 2026-31 to President Murmu

The members of the 16th Finance Commission, led by its Chairman Dr. Arvind Panagariya, met President Draupadi Murmu on 17 November 2025. Chairperson informed that during the meeting, the Commission presented its report for the years 2026-2031.

• Following clause (1) of Article 280 of the Constitution, the Sixteenth Finance Commission (XVIFC) was constituted by the President.
• The ministry stated that this report will be available in the public domain once it is tabled in Parliament by the Union Finance Minister under Article 281 of the Indian Constitution.
• Authorized to recommend the transfer formula and grant-in-aid beginning from 2026-27, the Commission visited all states and union territories before finalizing its views on tax devolution, revenue augmentation, and fiscal requirements.
• Piyush Goyal says that India aims to remain the fastest-growing major economy for the next 20 years.

16th Finance Commission

• This panel includes full-time members Annie George Mathew and Manoj Panda, while Soumya Kanti Ghosh, Chief Economic Advisor of the SBI Group, and T. Rabi Shankar, Deputy Governor of RBI, are part-time members.
• Along with tax transfers, the Commission has also examined the framework for financing disaster management and reviewed the funds created under the Disaster Management Act, 2005.
• Established on 31 December 2023, this constitutional body will replace the 15th Finance Commission headed by N.K. Singh, which had recommended that states receive 41% of the divisible pool between 2021-22 and 2025-26 — the same share earlier proposed by the 14th Finance Commission.
• As per the estimates of the 2025-26 Budget, out of the total tax receipts of ₹42.70 lakh crore by the Centre, ₹14.22 lakh crore is expected to be transferred to the states as their share of taxes.
• For 2021-26, the 15th Finance Commission assigned a weight of 15% to population, 15% to area, 12.5% to demographic performance, 10% to forest cover and ecology, and 2.5% to tax and fiscal efforts.
• The Fifteenth Finance Commission was constituted on 27 November 2017. Through its interim and final reports, it made recommendations covering six years beginning from 1 April 2020. The Chairperson of the Fifteenth Finance Commission is Shri N.K. Singh.