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16th Finance Commission Submits 2026–31 Fiscal Devolution Report to President

The recommendations will govern Centre–state tax devolution for 2026–31, with publication to follow tabling in Parliament.

Overview

  • The panel led by Arvind Panagariya delivered its report for the 2026–31 award period to President Droupadi Murmu on November 17.
  • Its mandate spans the vertical and horizontal sharing of central taxes, principles for grants-in-aid, resources for local bodies, and financing for disaster management.
  • The report will be made public after it is tabled in Parliament under Article 281, with recommendations guiding transfers from April 1, 2026, once accepted.
  • Commission members also presented copies to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman following wide consultations across all states and Union Territories.
  • Constituted on December 31, 2023 and granted a one-month extension to November 30, the body follows the 15th Commission that set a 41% states’ share using weighted criteria such as population, area and income distance.