Sixteenth Finance Commission (XVIFC) invites suggestions/views from general public, related to its terms of reference

• The Sixteenth Finance Commission invites suggestions from the general public, from interested organisations and individuals on the terms of reference the Commission may adopt.

Key Highlights:

• The 16th Finance Commission has been constituted by the provisions of the Constitution of India with Dr. Arvind Panagariya as Chairman.
• The Commission is required to make recommendations covering a period of five years commencing on April 2026 as to the following matters:
• The distribution between the Union and the States of the net proceeds of taxes which are to be divided between them under,
  • Part XII of the Constitution and the allocation between the States of the respective shares of such proceeds;
  • The principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India
  • the sums to be paid to the States by way of grants-in-aid under Article 275 of the Constitution.
  • The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State
• The Commission is also mandated to review the present arrangements on financing Disaster Management initiatives,
  • The funds constituted under the Disaster Management Act, 2005 and make appropriate recommendations thereon.

Prelims Takeaway:

• Finance Commission
• Art 275