Sixteenth Finance Commission Constitutes Five-Member Advisory Council

The Sixteenth Finance Commission has constituted an advisory council with five members to advise the Commission on any of the Terms of Reference (ToR) or related subjects. The Finance Commission, as per the ToR, will also suggest measures to augment the Consolidated Fund of a State to supplement the resources of panchayats and municipalities.

Advisory Council Members

Poonam Gupta, Director General of the National Council of Applied Economic Research, has been appointed as the convenor of the Advisory Council. The other members are:

  • D.K. Srivastava, Chief Policy Advisor at EY
  • Neelkanth Mishra, Chief Economist at Axis Bank
  • Pranjul Bhandari, Chief India Economist at HSBC Securities & Capital Markets
  • Rahul Bajoria, MD & Head of EM Asia (ex-China) Economics at Barclays

Role and Functions of the Advisory Council

The advisory council will assist the Commission in

  • Preparing papers or research studies
  • Monitoring or assessing studies commissioned by the Finance Commission
  • Enhancing the Commission’s understanding of issues in its ToR
  • Broadening the Commission’s ambit and understanding by seeking the best national and international practices on fiscal devolution

Terms of Reference (ToR)

The ToR approved by the Cabinet include

  • Distribution of net proceeds of taxes between the Union and states under Chapter I, Part XII of the Constitution
  • Allocation of respective shares of such proceeds between states
  • Principles governing the grants-in-aid of the revenues of states out of the Consolidated Fund of India
  • Sums to be paid to states by way of grants-in-aid of their revenues

Constitutional Mandate

The Finance Commission is a constitutionally mandated body established every five years to devise a formula for distributing net tax proceeds between the Centre and the states as well as among states and local bodies. Currently, India shares 41% of federal taxes with states as recommended by the 15th panel.

Piyush Shukla

Recent Posts

Ross Island New Name: What Is It Called Now?

The island of Ross Island in the Andaman and Nicobar Islands which holds much importance…

2 hours ago

Maharashtra GI Tags: Check the Complete List of Famous Products

In the State of Maharashtra there are many traditional products, agriculture produce, textiles, handicrafts, and…

3 hours ago

NH-22 Four-Laning: Muzaffarpur-Sitamarhi Project Explained

NH-22 Four-Laning Project in Bihar is sanctioned by the Cabinet Committee on Economic Affairs under…

4 hours ago

World Mosquito Day 2026: History, Diseases, Symptoms and Prevention

World Mosquito Day 2026 is celebrated on August 20 to bring attention to the dangers…

4 hours ago

International Criminal Court Explained: What Is the ICC and How Does It Work?

Recently, the US government has slapped sanctions on the President of the International Criminal Court…

5 hours ago

65th Subroto Cup International Football Tournament Opens in New Delhi

Subroto Cup International Football Tournament 2026 began in the National Capital , New Delhi from…

5 hours ago