The Government on Wednesday appointed four members to the 16th Finance Commission which was constituted on December 31, 2023 with Arvind Panagariya, former Vice-Chairman of the NITI Aayog, as its Chairman.
The President of India has approved the names of Ajay Narayan Jha, former member, 15th Finance Commission and former Secretary, Expenditure, Annie George Mathew, former Special Secretary, Expenditure, Dr. Niranjan Rajadhyaksha, Executive Director, Artha Global as full time members while Soumya Kanti Ghosh, Group Chief Economic Advisor, State Bank of India has been appointed as a part time member of the 16 Finance Commission.
The commission has been requested to make its recommendations on the distribution of taxes to states available by October 31, 2025, covering an award period of five years commencing April 1, 2026.
The Cabinet had on November 29, approved the terms of reference for the 16th Finance Commission.
These include the distribution of the net proceeds of taxes between the Centre and the states and the allocation between the states of the respective shares of such proceeds, the principles, grants-in-aid and the revenues of the states and measures needed to supplement the resources of the panchayats.
The Commission will also review the present arrangements on financing Disaster Management initiatives; concerning the funds constituted under the Disaster Management Act and make appropriate recommendations on the issue.