The government on Wednesday announced the appoint of former expenditure secretary Ajay Narayan Jha, SBI Group Chief Economic Advisor Soumya Kanti Ghosh, and two other members of the newly-constituted 16th Finance Commission.
The finance commission, chaired by former vice chairman of Niti Aayog Arvind Panagariya, will have four members, who will be assisted by Secretary Ritvik Ranjanam Pandey, two joint secretaries and one economic advisor.
Along with Jha, who was also a member of the previous 15th Finance Commission, retired bureaucrat Annie George Mathew and Artha Global Executive Director Niranjan Rajadhyaksha have been appointed as full-time members of the 16th Finance Commission.
Meanwhile, Soumya Kanti Ghosh will be a part-time member, the finance ministry said in a notification.
"The chairman and other members of the commission shall hold office from the date on which they respectively assume office up to the date of submission of report or October 31, 2025, whichever is earlier," the notification from the finance ministry added.
The commission, chaired by Panagariya, was established by the government on December 31, 2023. It is slated to present its report to the President by October 31, 2025, encompassing the five-year period starting from April 1, 2026.
In addition to proposing tax devolution mechanisms between the Center and states and recommending measures for revenue augmentation, the commission will evaluate the current financing arrangements for disaster management initiatives, particularly in relation to the funds established under the Disaster Management Act 2005.
The Finance Commission is a constitutional body that gives suggestions on centre-state financial relations.
The former 15th Finance Commission, chaired by NK Singh, proposed that states receive 41 per cent of the divisible tax pool of the Center for the five-year period from 2021-22 to 2025-26. This recommendation aligns with the level suggested by the 14th Finance Commission under Y V Reddy.