Following the appointment of Arvind Panagariya as the Chairman of the 16th Finance Commission, the government has announced the appointment of three full-time members and one part-time member to the Commission.
The three full-time Members are:
- Ajay Narayan Jha (Retd.IAS:1982:MN) – Former Member of the 15th Finance Commission and former Secretary, Department of Expenditure.
- Annie George Mathew (IA&AS:1988) – Former Special Secretary, Department of Expenditure.
- Niranjan Rajadhyaksha – Executive Director, Artha Global.
Additionally, Soumya Kanti Ghosh, Group Chief Economic Advisor at the State Bank of India, will serve as a part-time member.
Ritvik Ranjanam Pandey was earlier appointed as the Secretary to the 16th Finance Commission on December 31. These appointments are significant as the Commission plays a crucial role in recommending the distribution of financial resources between the Union and the States in India.
The 16th Finance Commission, responsible for determining the tax-sharing formula between the Centre and states, is anticipated to present its recommendations by October 31, 2025, covering a five-year award period starting April 1, 2026.
In November, the Union Cabinet, led by Prime Minister Narendra Modi, approved the commission’s Terms of Reference (ToR), encompassing the distribution of net tax proceeds between the Union and states and principles governing grants-in-aid. The ToR, described as “short but all-encompassing,” were developed in consultation with states, offering flexibility for stakeholder inputs.
