16th Finance Commission Holds First Meeting In New Delhi

The 16th Finance Commission met for the first time since its constitution, under the chairmanship of Dr. Arvind Panagariya, on Wednesday in New Delhi.

The meeting comes amid protests in the national capital, particularly from southern states, which are seeking a fairer share in the devolution of central taxes. 

A release on the matter said that the member attendees discussed the terms of reference and acknowledged the need for wide-ranging consultations with various stakeholders, including state governments, local bodies, ministries of the government of India and experts.

“The XVI-FC recognised that it will be carrying out detailed analytical work and would require to rope in all the expertise that it can garner, including that from leading research organisations, leading think tanks and other organisations working in the area of fiscal federal relations,” the release said. 

The 16th Finance Commission, also referred to as XVI-FC numerically, will make its recommendations public by Oct. 31, 2025, covering an award period of five years from April 1, 2026.

It will make recommendations on the distribution of net taxes between the Union and states, grants-in-aid to be allotted to states, the devolvement under the Disaster Management Act, and give its opinion on measures to supplement the resources of panchayats and municipalities in states.