Arvind Panagariya, former advisor to Prime Minister Narendra Modi, has been appointed as the chairman of the 16th Finance Commission, according to a Union Ministry of Finance notification on December 31. Ritvik Ranjanam Pandey will hold the post of secretary to the commission.
Panagariya served as the first Vice Chairman of the NITI Aayog from January 2015 to August 2017, resigning in 2017. He is a former Chief Economist of the Asian Development Bank and has worked with institutions like the World Bank, IMF, and UNCTAD.
The 16th Finance Commission’s chairman and other members will hold office up to the date of the report’s submission or October 31, 2025, whichever is earlier. The report, covering five years commencing on April 1, 2026, will be available by October 31, 2025.
Every five years, India establishes a Finance Commission to recommend the formula for sharing taxes between the central and state governments. Currently, India shares 42 percent of federal taxes with states.
