Govt agrees on certain terms for 16th Finance Commission | Latest News India - Hindustan Times

Govt agrees on certain terms for 16th Finance Commission

By, New Delhi
Nov 29, 2023 07:24 AM IST

The Union Cabinet discussed terms of reference for the 16th Finance Commission, but is yet to finalize the chairperson and members. The decisions are expected to be announced tomorrow. The 16th Finance Commission's five-year term is expected from 2026-27.

The Union Cabinet on Tuesday discussed terms of reference (ToR) for the 16th Finance Commission and in-principle agreed on some of them, but it is yet to finalise the name of its chairperson and members, officials aware of the late-night development said, requesting anonymity.

HT Image
HT Image

The decisions of the Cabinet are expected to be announced tomorrow, they said. The five-year term of the 16th Finance Commission is expected from 2026-27, hence the government has plenty of time to appoint its members. The 15th Finance Commission (2021-26) was chaired by NK Singh.

Hindustan Times - your fastest source for breaking news! Read now.

The Finance Commission is constituted by the President under Article 280 of the Constitution, mainly to give its recommendations on distribution of tax revenues between the Union and the States and among the states themselves. Two distinctive features of the commission’s work involve redressing the vertical imbalances between the taxation powers and expenditure responsibilities of the centre and the states respectively and equalization of all public services across states. Like the 15th Finance Commission , the ToR of this commission are expected to be unique and wide ranging, an official said. The 15 FC was asked to recommend performance incentives for states in areas like power sector, adoption of the direct benefit transfer (DBT) of subsidies, and the solid waste management. Besides, its ToR also included a funding mechanism for the defence and the internal security.

Unveiling 'Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch Now!

Get Current Updates on India News, Gyanvapi Case, Farmers Protest Live along with Latest News and Top Headlines from India and around the world
Share this article
Story Saved
Live Score
Saved Articles
My Reads
Sign out
New Delhi 0C
Monday, February 26, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On