<h1>New Finance Commission to Guide Tax Distribution and Disaster Management from 2026 to 2031.</h1> The Union Cabinet, led by the Prime Minister, has approved the Terms of Reference for the Sixteenth Finance Commission, which will make recommendations for the five-year period starting April 1, 2026. The Commission will address the distribution of tax proceeds between the Union and States, grants-in-aid, and measures to enhance resources for Panchayats and Municipalities. It will also review financing for Disaster Management. The report is due by October 31, 2025. The Fifteenth Finance Commission's recommendations are valid until March 31, 2026, prompting the formation of the Sixteenth Commission to ensure continuity.