Modi Govt Appoints Arvind Panagariya As Chairman For 16th Finance Commission

On Sunday, the Narendra Modi Government appointed former vice-chairman of NITI Aayog Arvind Panagariya as Chairman of the 16th Finance Commission. According to the reports, Panagariya will look into taxation matters and revenue systems between the Centre and states.

An order by the Ministry of Finance's Department of Economic Affairs (DEA), said "The Government of India, with the approval of the President of India, has constituted the Sixteenth Finance Commission, in pursuance to Article 280(1) of the Constitution."

According to the latest notification, Arvind Panagariya, the 16th Finance Commissioner has been asked to file its report for five financials starting April 1, 2026, latest by October 31, 2025.

According to the latest notification, Arvind Panagariya, the 16th Finance Commissioner has been asked to file its report for five financials starting April, 2026 latest by October 31, 2025.

Impressed with Panagariya's commendable portfolio, Prime Minister Narendra Modi appointed him as the first chairman of NITI Aayog in 2015. Panagariya also played a big role in the planning and execution to host the G20 summit.

"The distribution between the Union and the States of the net proceeds of taxes which are to be, or maybe, divided between them under Chapter I, Part XII of the Constitution and the allocation between the States of the respective shares of such proceeds," the first Term of Reference said.

"The principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India and the sums to be paid to the States by way of grants-in-aid of their revenues under article 275 of the Constitution for the purposes other than those specified in the provisos to clause (1) of that article," the second term of reference stated.

"The 16th Finance Commission may review the present arrangements on financing Disaster Management initiatives, with reference to the funds constituted under the Disaster Management Act, 2005 (53 of 2005), and make appropriate recommendations thereon," the notification's third part reads.