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New Delhi: The government has appointed four full-time members of the Sixteenth Finance Commission (SFC).
Former expenditure secretary and member of the 15th Finance Commission, A N Jha, former special secretary of the department of expenditure Annie George Mathew, State Bank of India’s group chief economic advisor Soumya Kanti Ghosh, and executive director of Artha Global Niranjan Rajadhyaksha have been appointed as full-time members of the SFC, the government said in a gazetted notification late on Tuesday.
In December, the government had appointed former vice chairperson of NITI Aayog Arvind Panagariya to lead the SFC, which will set the formula for sharing a big chunk of the Centre’s tax revenue with states for five years from FY27.
According to the notification, approved by President Droupadi Murmu on Tuesday, 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 the report or 31 October 2025, whichever is earlier.
The SFC is tasked with defining the distribution of the Centre’s tax revenue to states for the next five years, starting FY27.
It will also ensure that states have efficient systems and measures in place for financing local bodies as advised by the state finance commissions. The SFC will suggest steps to augment the states’ consolidated funds for panchayats and municipalities, and review national and state disaster management funds.
The government has kept the ‘terms of reference’ of the commission short, giving the SFC the flexibility to make recommendations governing tax revenue sharing within constitutional limits.
On 1 December Mint reported quoting finance secretary T.V. Somanathan that the terms of reference of the commission were kept “short and direct”, based on suggestions from states.
The move has helped avoid past controversies involving the commission’s terms of reference. Each finance commission operates autonomously.
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Published: 31 Jan 2024, 09:41 AM IST
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