The Sixteenth Finance Commission (XVIFC), chaired by economist Dr. Arvind Panagariya, submitted its long-awaited report to the President of India on 17 November 2025. The report lays out the fiscal blueprint for the period 1 April 2026 to 31 March 2031, shaping how tax revenues will be shared between the Centre and the States.
Constituted under Article 280 of the Constitution, the Finance Commission is responsible for recommending the distribution of tax proceeds, grants-in-aid principles, and frameworks for disaster management funding. The XVIFC, formed in 2023, has now completed its mandate for the 2026–31 award cycle.
The Commission includes members Smt. Annie George Mathew, Dr. Manoj Panda, Shri T. Rabi Sankar, Dr. Soumyakanti Ghosh, with Shri Ritvik Pandey serving as Secretary. After submission to the President, the report was also presented to the Prime Minister and the Finance Minister.
The recommendations cover tax devolution (both vertical and horizontal), performance-based grants, revenue deficit support, disaster risk financing, and enhanced funding pathways for local bodies. The report is structured in two volumes—Volume I with policy recommendations and Volume II with annexures and data.
The document will be made public after it is tabled in Parliament under Article 281, marking a crucial milestone in India’s evolving fiscal federal architecture.
