16th Finance Commission (2026-31)
16th Finance Commission (Art. 280), chaired by Dr. Arvind Panagariya, covers 2026–31. States’ share in divisible pool stays 41%; ₹9.47 lakh crore grants for local bodies and disaster management over five years are recommended, while revenue-deficit, sector- and state-specific grants are discontinued. Rising cesses/surcharges shrink shareable pool. High income-distance weight aids poorer States; tied grants and NREGA 40% State cost raise autonomy/vertical-imbalance concerns; “base-year tyranny” cited. Way forward: rationalise cesses, reform criteria, prefer predictable untied transfers.
The Hindu
