Arvind Panagariya appointed as 16th Finance Commission Chairman
The Indian government has appointed Arvind Panagariya, a former NITI Aayog Vice Chairman and Columbia University professor, as the Chairman of the 16th Finance Commission. This commission will play a crucial role in determining the tax revenue sharing formula between the central government and individual states for the five-year period starting in April 2026. Panagariya's appointment was announced by the Finance Ministry, following the Cabinet's approval of the terms of reference on November 29.
Panagariya has a strong background and extensive experience in economics
Born on September 30, 1952, Panagariya boasts an impressive academic background, holding a PhD from Princeton University. He is an alumnus of the University of Rajasthan. His professional experience includes serving as Chief Economist at the Asian Development Bank and working with prominent organizations such as the World Trade Organisation, International Monetary Fund, and World Bank. In 2015, Panagariya was appointed as the first Vice Chairman of NITI Aayog, a position he held until 2017 when he returned to academia.
Ritvik Ranjanam Pandey named panel's secretary
In addition to Panagariya's appointment, Ritvik Ranjanam Pandey, a former Joint Secretary in the Department of Revenue, has been named as the panel's secretary. The Commission's other members will be announced separately. The Chairman and members will serve until either the submission of their report or October 31, 2025, whichever comes first. The deadline for submitting recommendations is set for October 2025, allowing them to be incorporated into the budget exercise for 2026-27.
16th Finance Commission has these key tasks
The 16th Finance Commission has several important tasks ahead. These include recommending tax-sharing formulas between the central government and states, reviewing current financing arrangements for Disaster Management initiatives, and proposing measures to increase states' consolidated funds to supplement resources available to Panchayats and Municipalities. The commission is expected to spend around two years consulting with stakeholders in both the states and central government before reaching their final conclusions.
