16th finance panel chairperson, members to be appointed over next few days

The chairperson and members of the Sixteenth Finance Commission are likely to be announced and notified over the next few days so that the panel can start work in full swing from the New Year. 

“A decision has been made on the members. The appointment should be announced by next week,” said a person privy to the development, adding that the panel is likely to begin deliberations at the earliest, if not by January 2024.  

The Commission is expected to submit its report by October 31, 2025, for the five-year period starting from April 1, 2026. 

The Union Cabinet had in its meeting on November 28 approved the terms of reference of the Sixteenth Finance Commission although it had not approved the names of the members. 

Finance Secretary TV Somanathan had on Thursday told reporters that the appointment of the chairperson and members of the commission was “imminent”. He had also stated that there is no legal bar on appointing someone as a member of two commissions in response to another question.  

NK Singh, chairman of the Fifteenth Finance Commission had met the Union finance minister Nirmala Sitharaman on November 29, soon after the Cabinet decision, leading to speculation that he may be re-appointed to the panel again. 

The Finance Secretary also clarified that there would be no addition to the terms of reference approved by the Union Cabinet. This was base don various requests by the states to keep the terms of reference of the panel to the minimum in order to help them freedom to decide on the devolution of funds to states.  

“…one could argue that less is more in the sense that this actually gives the Commission much more leeway and freedom to take into account all the inputs that they get from the different layers of government, from the different experts, from different people and then can fashion the award within the constitutional frame,” Somanathan had said. 

According to an official release, the terms of reference of the Sixteenth Finance Commission include the distribution of net proceeds of taxes between the Centre and states, principles governing the grants-in- aid of the revenues of the States out of the Consolidated Fund of India and measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State. 

Also Read: Festive sales: Maruti Suzuki sells 164,439 units in November, utility vehicles demand grows