16th Finance Commission invites views from public on terms of reference

New Delhi: The 16th Finance Commission on Wednesday invited views from the general public and organisations on its terms of reference like tax devolution formula and measures to augment the consolidated fund of states.

The 16th Finance Commission, under the Chairmanship of Arvind Panagariya, was constituted on December 31, 2023. Former expenditure secretary Ajay Narayan Jha, retired bureaucrat Annie George Mathew and economist Manoj Panda are full-time members of the commission, while SBI Group Chief Economic Advisor Soumya Kanti Ghosh is a part-time member.

The panel would submit its report to the President by October 31, 2025. The report would give recommendations for the next five years, commencing April 1, 2026.

"The Sixteenth Finance Commission (XVIFC) invites suggestions/views from the general public, interested organisations and individuals on the terms of reference for the XVIFC as specified below, as well as the general approach that the XVIFC may adopt. Views are also invited on any other issue relevant to the work of the XVIFC," an official statement said.

Suggestions may be submitted through the website of the 16th Finance Commission (https://fincomindia.nic.in/portal/feedback) under the section 'Call for Suggestions'.

Besides suggesting tax devolution between the Centre and states and revenue augmentation measures, the commission would review the present arrangements for financing disaster management initiatives related to the funds constituted under the Disaster Management Act, 2005.

The Finance Commission is a constitutional body that gives suggestions on centre-state financial relations.

The erstwhile 15th Finance Commission under NK Singh had recommended that states be given 41 per cent of the divisible tax pool of the Centre during the five-year period 2021-22 to 2025-26, which is at the same level as was recommended by the 14th Finance Commission under YV Reddy.