What is the story about?
India’s 16th Finance Commission, led by economist Arvind Panagariya, on Monday submitted its recommendations for the 2026-31 period to President Droupadi Murmu, completing the exercise ahead of its November 30 deadline.
The commission’s members handed over the report during a formal ceremony at Rashtrapati Bhavan, where Murmu received the red-bound document as officials and photographers recorded the event.
Constituted under Article 280 of the Constitution, the Finance Commission determines how the federal government’s tax revenues are shared with states, a key element of India’s fiscal architecture.
The current panel has been reviewing competing demands for changes to the formula that allocates funds, including calls from some states to incorporate GDP contribution, population trends and governance indicators more prominently.
Panagariya, a former vice-chairman of government think tank NITI Aayog, has said the panel aimed to balance equity with incentives for growth as it reviewed the existing income-distance method used to calculate devolution.
The government will examine the recommendations before presenting its decision in the upcoming budget cycle. The commission’s conclusions are expected to influence fiscal planning and inter-state fund flows over the next five years.
The commission’s members handed over the report during a formal ceremony at Rashtrapati Bhavan, where Murmu received the red-bound document as officials and photographers recorded the event.
Members of the 16th Finance Commission, led by its Chairman, Dr Arvind Panagariya, called on President Droupadi Murmu and submitted the Commission's report
for 2026-31. pic.twitter.com/YFjwcRzIRw
— President of India (@rashtrapatibhvn) November 17, 2025
Constituted under Article 280 of the Constitution, the Finance Commission determines how the federal government’s tax revenues are shared with states, a key element of India’s fiscal architecture.
The current panel has been reviewing competing demands for changes to the formula that allocates funds, including calls from some states to incorporate GDP contribution, population trends and governance indicators more prominently.
Panagariya, a former vice-chairman of government think tank NITI Aayog, has said the panel aimed to balance equity with incentives for growth as it reviewed the existing income-distance method used to calculate devolution.
The government will examine the recommendations before presenting its decision in the upcoming budget cycle. The commission’s conclusions are expected to influence fiscal planning and inter-state fund flows over the next five years.
Do you find this article useful?
