16th Finance Commission: Cabinet Approves 3 New Posts

New Delhi, Jan 18 (PTI) The Cabinet on Thursday approved the creation of three officer-level posts for assisting the 16th Finance Commission, chaired by Arvind Panagariya.

The Union Cabinet chaired by Prime Minister Narendra Modi has approved the creation of three posts at the level of Joint Secretary i.e. two posts of Joint Secretary and one post of Economic Adviser, for the 16th Finance Commission, an official statement said.

"The newly created posts are required to assist the Commission in carrying out its functions," the statement said.

All other posts in the commission have already been created as per the delegated powers, it added.

In a notification dated December 31, 2023, the government appointed former vice chairman of Niti Aayog Panagariya as the chairman of the 16th Finance Commission.

Ritvik Ranjanam Pandey was named as the Secretary to the Commission.

The Commission would submit its report to the President by October 31, 2025. The report would be for five years commencing April 1, 2026.

Besides suggesting tax devolution between the Centre and states and revenue augmentation measures, the Commission would review the present arrangements for financing disaster management initiatives with reference to the funds constituted under the Disaster Management Act, 2005.

The Finance Commission is a constitutional body that gives suggestions on centre-state financial relations.

The erstwhile 15th Finance Commission under NK Singh had recommended that states be given 41 per cent of the divisible tax pool of the Centre during five-year period 2021-22 to 2025-26, which is at the same level as was recommended by the 14th Finance Commission.