Sixteenth Finance Commission submits its report for 2026-31 to President Murmu

New Delhi

The Sixteenth Finance Commission (16th FC), chaired by economist Arvind Panagariya, has submitted its report to the President of India, the office of the President announced on Monday (November 17, 2025).

The primary task of the successive Finance Commissions, including the Sixteenth, is to recommend the basis for the distribution of taxes between the Centre and the States, including the break-up among States.

The 16th FC’s recommendations would apply for a period of five years beginning on April 1, 2026.

“Members of the 16th Finance Commission, led by its Chairman, Dr. Arvind Panagariya, called on President Droupadi Murmu and submitted the Commission’s report for 2026-31,” the office of the President of India posted on X. 

The Union Cabinet had on November 29, 2024, approved the terms of reference for the 16th FC. At the time, it had also said that the Commission was to submit its report by October 31, 2025. 

Apart from deciding on the Centre-States tax division, the 16th FC was also tasked with recommending the principles that should govern the grants-in-aid transferred by the Centre to the States, and also the measures needed to augment the funds of the States to supplement the resources of their panchayats and municipalities.