- Prolongation of the deadline of the 16 th Finance Commission: The Government of India has provided a further extension of the deadline of the 16 th Finance Commission to 30 November 2025.
- Chairperson: Arvind Panagariya is the Commission chairperson.
- Mandate: Recommends tax revenue allocation between Centre and States in 20262031, and the fiscal mechanism of disaster management.
- Constituted On: 31 December 2023 as a constitutional institution under Article 280.
- Members:
- Full-time: Annie George Mathew, Manoj Panda.
- Part time: Soumya Kanti Ghosh, T. Rabi Sankar.
- Secretary: Ritvik Pandey
- Key Focus Areas:
- Centre-State financial relations.
- Fiscal problems after the pandemic.
- Enhancing Disaster Response Funds and Mitigation Funds.
- Strainability of debts and fiscal discipline incentives.
- State grants-based on performance.
- Past Commission: The last Commission, 15 th Finance Commission (N.K. Singh) proposed to devolve central taxes to states 41 percent (20212026).
Why Extension?
- Gives greater room of consultation with states under transformed economic conditions and policy alterations particularly on fiscal autonomy and central scheme funding.
Month: Current Affairs - October 17, 2025
Category: CURRENT AFFAIRS NATIONAL AND STATE NEWS