The Sixteenth Finance Commission (XVIFC) was constituted by the Hon’ble President of India in pursuance of clause (1) of article 280 of the Constitution. The XVIFC, headed by Chairman Dr. Arvind Panagariya, submitted its Report today to the Hon’ble President of India. Members of the XVIFC, Smt. Annie George Mathew, Dr. Manoj Panda, Shri T. Rabi Sankar and Dr. Soumyakanti Ghosh and the Secretary to the XVIFC Shri Ritvik Pandey accompanied the Chairman. Thereafter, the XVIFC also presented a copy of the report to the Prime Minister and to the Union Finance Minister.

As per the terms of reference (ToR), the XVIFC was mandated to give its report covering a period of five years commencing on the 1^st day of April, 2026 making recommendations on the distribution of the net proceeds of taxes between the Union and the States as well as the allocation between the States of the respective shares of such proceeds, grants-in-aid to States, review arrangements on financing Disaster Management initiatives, etc.

Accordingly, during its tenure, the XVIFC analysed the finances of the Union and States in detail and has come up with a report after wide-ranging consultations with the Union Government, State Governments, Local Governments at different tiers, Chairpersons and Members of previous Finance Commissions, academic institutions of eminence, multi-lateral institutions, Advisory Council to the Commission, and other domain experts. This report has been organised in two volumes where Volume I contains the recommendations as per the TOR and the accompanying annexures are in Volume II.

The report shall be available in the public domain once it is tabled in the Parliament by the Union Finance Minister under Article 281.

Sixteenth Finance Commission submits recommendations on tax distribution, state allocations, grants and disaster financing for 2026-31. The Sixteenth Finance Commission, constituted under Article 280, submitted its report for 2026-27 to 2030-31 recommending the distribution of the net proceeds of taxes between the Union and States, allocation of States' shares, grants-in-aid to States, and review of financing arrangements for disaster management; the report follows wide consultations and is in two volumes, with Volume I containing recommendations and Volume II annexures, and will be published when tabled in Parliament under Article 281.