‘The members would be notified as soon as possible as they have to finish the report within two years from the date of appointment,’ said Union Minister for Information and Broadcasting Anurag Singh Thakur on Wednesday

AMN

The Union Cabinet today approved the terms of reference of the 16th Finance Commission. However, details on its members and Chairperson as well as exact terms of reference are expected to be approved at a later date.

“The members would be notified as soon as possible as they have to finish the report within two years from the date of appointment,” said Union Minister for Information and Broadcasting Anurag Singh Thakur on Wednesday.

The decision was approved by the Union Cabinet chaired by Prime Minister Narendra Modi on Tuesday evening.

The Commission would look into the devolution of taxes between the Centre and States for the five year period from April 1, 2026 to March 31, 2031, the minister said. To this end, the Commission would be expected to submit its report by October 2025.

“It takes about two years for the finance panel to submit its report,”Thakur noted, adding that this is done based on discussions with the Centre and the states.

The ToR also include determining the revenue to states and the increase in consolidated fund of states to increase the income of Gram Panchayats and on disaster management financing.