The government has extended the tenure of the 16th Finance Commission by one month, the Finance Ministry said in a notification dated October 10.
The date for submission of the Finance Commission report has now been extended till November 30.
The 16th Finance Commission, constituted by the government on December 31, 2023, with former Niti Aayog vice-chairman Arvind Panagariya as its Chairman, was to submit a report by its panel by October 31.
It is expected to mainly make recommendations on the distribution of taxes between the Centre and states for a 5-year period starting April 1, 2026.
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Besides suggesting tax devolution between the Centre and states and revenue augmentation measures, the commission will also review the present arrangements for financing disaster management initiatives with reference to the funds constituted under the Disaster Management Act, 2005.
The body has four members and is assisted by Secretary Ritvik Pandey, two joint secretaries and one economic advisor. Retired bureaucrat Annie George Mathew and economist Manoj Panda are full-time members of the Commission, while SBI Group Chief Economic Advisor Soumya Kanti Ghosh and RBI Deputy Governor T Rabi Sankar are part-time members.
The Finance Commission is a constitutional body that gives suggestions on Centre-state financial relations.
The erstwhile 15th Finance Commission, under NK Singh, had recommended that states be given 41 per cent of the divisible tax pool of the Centre during the five-year period, i.e., 2021-22 to 2025-26, which is at the same level as was recommended by the 14th Finance Commission under YV Reddy.
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