Cabinet approves creation of three officer-level posts for 16th Finance Commission

The Union Cabinet chaired by Prime Minister Narendra Modi today approved the creation of three officer-level posts for assisting the 16th Finance Commission.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has granted approval for the establishment of three officer-level posts to support the 16th Finance Commission. The newly instituted positions consist of two Joint Secretary-level roles and one Economic Adviser.

The appointments align with the notification issued on December 31, 2023, in accordance with the provisions of Article 280 of the Constitution. The 16th Finance Commission is tasked with evaluating the financial situations of both central and state governments, providing recommendations for assistance grants, suggesting tax adjustments, and determining the framework for tax distribution among states.

On December 31, Arvind Panagariya, former Vice Chairman of NITI Aayog and a professor at Columbia University, was appointed as the Chairman of the 16th Finance Commission.
Hrithik Ranjan Pandey has been designated as the new Secretary of the Finance Commission.

The Commission will submit its report to the President by October 31, 2025, covering a five-year period starting April 1, 2026.

The 15th Finance Commission was established on November 27, 2017, with recommendations spanning from 2020-21 to 2025-26. Typically, it takes about two years for the Finance Commission to present its recommendations.

In accordance with Article 280(1) of the Constitution, the Finance Commission is constituted every five years or earlier. The Advance Cell of the 16th Finance Commission was instituted on November 21, 2022, within the Finance Ministry to oversee preliminary activities until the formal establishment of the Commission.