The Sixteenth Finance Commission (SFC) held its first meeting on Wednesday to discuss the terms of reference and other matters, the finance ministry said in a statement.
At the meeting, the members acknowledged the need for wide-ranging consultations with various stakeholders, including state governments, local bodies, Union ministries, and experts.
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The commission recognised that it would be carrying out detailed analytical work and would be required to rope in all the expertise that it could garner, including from leading research organisations, think tanks, and other organisations working in the area of fiscal federal relations.
Further, the commission approved the setting up of its office at Jawahar Vyapar Bhawan on Janpath in New Delhi. It will make recommendations available by 31st October, 2025, covering an award period of 5 years commencing 1st April, 2026.
The commission has been constituted by the president to define the financial relations between the Central government and states.
The Sixteenth Finance Commission will also suggest steps to augment the states’ consolidated funds for panchayats and municipalities, and review national and state disaster management funds.
AN Jha, former expenditure secretary and member of the 15th Finance Commission, Annie George Mathew, former special secretary of the department of expenditure, and executive director of Artha Global Niranjan Rajadhyaksha have been appointed as full-time members of the SFC.
The State Bank of India’s group chief economic adviser Soumya Kanti Ghosh has been appointed as a part-time member of the commission.
