The Central Government has recently appointed the members of the Sixteenth Finance Commission, established on December 31, 2023.
The President of India has approved the appointment of the following members:
1. Shri. Ajay Narayan Jha, former member of the 15th Finance Commission and former Secretary, Expenditure – Full-time Member
2. Smt. Annie George Mathew, former Special Secretary, Expenditure – Full-time Member
3. Dr. Niranjan Rajadhyaksha, Executive Director, Artha Global – Full-time Member
4. Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor, State Bank of India – Part-time Member
The Commission’s terms of reference were officially communicated on December 31, 2023. It has been mandated to present its recommendations by October 31, 2025, encompassing a 5-year award period starting from April 01, 2026.
Under the Chairmanship of Prime Minister Narendra Modi, the Union Cabinet has granted approval for the establishment of three key positions at the Joint Secretary level, comprising two Joint Secretary roles and one Economic Adviser, to support the 16th Finance Commission.
The formation of these positions aligns with the provisions of Article 280 of the Constitution, as indicated in the official notification dated December 31, 2023.
Read More: Cabinet approves Creation of Positions for 16th Finance Commission
The establishment of the Sixteenth Finance Commission and appointment of members is anticipated to involve a critical review of the revenue collections of states within the ambit of the Goods and Services Tax (GST), with a particular focus on the necessity for assessing the GST compensation cess, reported BT.
Read More: Sixteenth Finance Commission Poised to Scrutinize State GST Revenue Collections
The Union Finance Minister Nirmala Sitharaman stated in reply to a question raised in the Lok Sabha asking whether the Government is facing any problem regarding sharing of revenue among Centre and States in the absence of 16th Finance Commission; that the revenue sharing takes place as per recommendations of the present financial commission in tenure, the 15th FInancial Commission.
Read More: Constitution of 16th Financial Commission not Delayed: FM Nirmala Sitharaman in Lok Sabha
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has granted approval for the Terms of Reference of the Sixteenth Finance Commission. These terms will be officially notified in the coming period. The recommendations of the 16th Finance Commission, once accepted by the government, are slated to apply for a duration of five years from April 1, 2026.
Read More: Cabinet approves Terms of Reference for 16th Finance Commission
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