President Appoints Members to 16th Finance Commission

  • 02 Feb 2024

Recently, the President appointed three full-time members and one part-time member to the 16th Finance Commission.

Key Points

  • Full-Time Members: Ajay Narayan Jha, Annie George Mathew, and Niranjan Rajadhyaksha have been appointed as full-time members. Ajay Narayan Jha is a former Member of the 15th Finance Commission and former Secretary of the Department of Expenditure. Annie George Mathew is a former Special Secretary in the Department of Expenditure. Niranjan Rajadhyaksha currently serves as the Executive Director of Artha Global.
  • Part-Time Member: Soumya Kanti Ghosh, the Group Chief Economic Advisor at the State Bank of India, has been appointed as a part-time member.
  • Appointment of Chairman: In December last year, President Murmu appointed Arvind Panagariya, former Vice-Chairman of NITI Aayog and Professor at Columbia University, as the Chairman of the 16th Finance Commission.
  • Tenure: The Chairman and other members of the 16th Finance Commission will hold office from the date they assume office up to the submission of the report or October 31, 2025, whichever is earlier.
  • Report Deadline: The 16th Finance Commission is tasked with presenting its report by October 31, 2025, covering a period of five years from April 1, 2026.

Terms of Reference

  • The 16th Finance Commission will make recommendations on the distribution of net tax proceeds between the Union and States.
  • It will suggest principles governing grants-in-aid of states' revenues from the Consolidated Fund of India.
  • Recommendations on grants-in-aid of revenues under Article 275 of the Constitution for purposes other than those specified in the provisos to clause (1) of that article.
  • The Commission will propose measures to augment the Consolidated Fund of a State to supplement the resources of its Panchayats and Municipalities based on recommendations by the State Finance Commission.
  • Reviewing financing arrangements for disaster management initiatives under the Disaster Management Act, 2005, and making appropriate recommendations.