The 16^th Finance Commission (XVI-FC) held its first meeting under the Chairmanship of Dr. Arvind Panagariya in Jawahar Vyapar Bhawan, Janpath, New Delhi. The Chairman and Members were welcomed by Secretary, XVI-FC, Shri Ritvik Ranjanam Pandey and other officials of the Finance Commission.

The XVI-FC discussed its Terms of Reference, as per the order made by the President of India and notified by the Ministry of Finance vide Notification S.O. 5533(E), dated 31^st December, 2023.

The XVI-FC acknowledged the need for wide ranging consultations with various stakeholders, including State Governments, Local Bodies, Ministries of Government of India, and experts.

The XVI-FC recognised that it will be carrying out detailed analytical work and would require to rope in all the expertise that it can garner, including that from leading research organisations, leading think tanks and other organisations working in the area of fiscal federal relations.

The XVI-FC approved the setting-up of its office at Jawahar Vyapar Bhawan on Janpath in New Delhi.

The XVI-FC will make its recommendations available by 31^st October, 2025, covering an award period of 5 years commencing 1^st April, 2026.

Finance Commission recommendations to address fiscal federal relations through broad consultations and expert inputs by stipulated deadline. The finance commission held its first meeting to consider its Terms of Reference, approved setting up its office in New Delhi, and committed to wide consultations with State Governments, local bodies, central ministries, research organisations and experts to carry out detailed analytical work. It established a timeline to deliver recommendations covering a five-year award period commencing in the fiscal year following the award.