Union Cabinet on Thursday approved the creation of three senior official level posts for the 16th Finance Commission.
In a statement, the government said that the Cabinet 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. “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,” the statement said.
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The government has already appointed Arvind Panagariya as Chairman of the commission while Ritwik R Pandey will be Secretary to the commission. Other members are to be appointed. Also, Finance Ministry has invited applications for appointment of various officers and employees in the commission.
Commission’s report
The commission would submit its report to the President by October 31, 2025. The report would be for five years commencing April 1, 2026. 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.
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.