Arvind Panagariya Appointed Chairman of India’s 16th Finance Commission

Arvind Panagariya Appointed Chairman of India's 16th Finance Commission

VoM News Desk | December 31, 2023 | 08:26 PM IST | Breaking News | Follow on Google News

Arvind Panagariya Appointed Chairman of India’s 16th Finance Commission/ANI

Arvind Panagariya Appointed Chairman of India’s 16th Finance Commission

Renowned economist Arvind Panagariya, former Vice Chairman of NITI Aayog, has been named as the Chairman of India’s newly constituted 16th Finance Commission. This commission, a pivotal entity in the country’s fiscal framework, is convened every five years to formulate the framework for allocating federal taxes between the union and state governments.

Critical Responsibilities Ahead
Panagariya’s appointment entails the significant responsibility of overseeing and determining the fiscal landscape of the nation for the ensuing five years. The Commission under his leadership will provide recommendations on the distribution of tax proceeds, principles governing state revenue grants-in-aid, and strategies to bolster the Consolidated Fund of the state, supporting Panchayats and Municipalities. Presently, 42% of federal taxes are shared with Indian states.

Rich Expertise and Global Perspective
Hailing from India and having studied in the United States, Panagariya brings a wealth of global perspective and local acumen to this role. His prior tenure as the head of NITI Aayog, the government’s primary policy think tank, and his professorial stint at Columbia University underscore his extensive experience.

Future Plans and Timelines
The 16th Finance Commission is tasked with submitting its report by October 31, 2025. This report will outline recommendations for public finances and tax allocation beginning April 1, 2026, for the subsequent five years. The tenure of the Chairman and other members extends until the submission of the report or October 31, 2025, whichever comes earlier. The Union Cabinet has endorsed the Terms of Reference, encompassing suggestions on tax sharing between the Centre and states, measures for revenue enhancement, and a review of current funding mechanisms for disaster management initiatives.

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