16th Finance Commission: Union Cabinet Approves Creation Of Three Officer-Level Posts

16th Finance Commission: Ritvik Ranjanam Pandey was named as the Secretary to the Commission

The Finance Commission is a constitutional body that gives suggestions on centre-state financial relations.

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The Union Cabinet on Thursday approved the creation of three officer-level posts for assisting the 16th Finance Commission, chaired by Arvind Panagariya. The Cabinet meeting chaired by Prime Minister Narendra Modi has approved the creation of three posts at the level of Joint Secretary i.e. two posts of Joint Secretary and one post of Economic Adviser, for the 16th Finance Commission, acording to an official release on Thursday.

As per the release, "The newly created posts are required to assist the Commission in carrying out its functions." All other posts in the commission have already been created as per the delegated powers, it added.

In a notification dated December 31, 2023, the government appointed former vice chairman of NITI Aayog Panagariya as the chairman of the 16th Finance Commission.

Ritvik Ranjanam Pandey was named as the Secretary to the Commission. The Commission would submit its report to the President by October 31, 2025. The report would be for five years commencing April 1, 2026.

The Finance Commission is a constitutional body that gives suggestions on centre-state financial relations. The erstwhile 15th Finance Commission under NK Singh had recommended that states be given 41 per cent of the divisible tax pool of the Centre during five-year period 2021-22 to 2025-26, which is at the same level as was recommended by the 14th Finance Commission. 

Besides suggesting tax devolution between the Centre and states and revenue augmentation measures, the Commission would review the present arrangements for financing disaster management initiatives with reference to the funds constituted under the Disaster Management Act, 2005.

Meanwhile, on February 1, the government will not be presenting a full budget, rather an interim Budget. Finance Minister Nirmala Sitharaman is scheduled to present the Budget in the Lok Sabha on February 1.