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Ex-NITI Aayog vice-chairman Arvind Panagariya to lead 16th Finance Commission
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
The government on Sunday appointed former vice-chairman of NITI Aayog and Columbia University professor Arvind Panagariya as the chairman of the 16th Finance Commission for recommending a devolution formulated for tax revenues between the Centre and states, according to an official order.
The order of Panagariya’s appointment came about a month after the government on November 29, announced terms of reference (ToR) for the 16th FC, which also asked the body to suggest measures for augmenting states’ resources for local bodies besides reviewing the existing arrangements for financing disaster management initiatives.
“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,” a notification issued by the Department of Economic Affairs (DEA), an arm of the Union finance ministry said on Sunday.
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As per the notification, the 16th FC is asked to make its report available by October 31, 2025, covering five years from April 1, 2026.
According to details on the Columbia University website, Panagariya is a professor of economics and the Jagdish Bhagwati Professor of Indian political economy at the university. His focus areas include international trade policy, economic development and economic reforms with a focus on India.
Prime Minister Narendra Modi appointed Panagariya as the first chairman of NITI Aayog (the reconstituted Planning Commission) from January 2015 to August 2017 in the rank of a cabinet minister. During this period, he also served as India’s G20 Sherpa.
The Sunday notification said that members of the 16th Finance Commission would be notified separately. It appointed Ritvik Ranjanam Pandey as secretary to the Commission. On November 6, Pande, a 1998-batch lAS officer and a joint secretary in the department of revenue, was appointed as officer on special duty (OSD) for the advance cell of the 16th Finance Commission in the rank and pay of additional secretary.
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The Sunday notification regarding the appointing of the chairman also detailed terms of reference (ToR)s for the Commission. “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 ToR 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,” mentioned the second ToR.
The third ToR pertains to the measures needed to augment the consolidated fund of a state to supplement the resources of the panchayats and municipalities based on recommendations made by respective state finance commissions.
“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 said.
