Finance Commission members

• The Centre has notified the appointment of four full-time members for the panel of 16^th Finance Commission.
• It is chaired by the first NITI Aayog vice-chairman and Columbia University professor Arvind Panagariya.
• October 2025 is the deadline set for the commission to submit its recommendations, so that they can be incorporated in the Budget exercise for 2026-27.
• The new panel has been tasked with recommending the tax-revenue sharing formula between the Centre and the States for the five-year period beginning April 2026.
• The Sixteenth Finance Commission’s terms of reference include a review of the present arrangements for financing disaster management initiatives and mooting measures to augment States’ consolidated funds to supplement resources available with panchayats and municipalities.
• Now the following members are appointed to the Commission with the approval of the President of India-
  • Ajay Narayan Jha, former member, 15th Finance Commission and former Secretary, Expenditure
  • Annie George Mathew, former Special Secretary, Expenditure
  • Niranjan Rajadhyaksha, Executive Director, Artha Global
  • Soumya Kanti Ghosh, Group Chief Economic Advisor, State Bank of India (Part time member)

BRIEF ABOUT FINANCE COMMISSION

• The Finance Commission is constituted under Article 280 of the Constitution, mainly to give its recommendations on distribution of tax revenues between the Union and the states and among the states themselves.
• The President of India constitutes a Finance Commission every fifth year or at such a time that is considered necessary.
• Composition – Chairman + 4 members