Finance Commission (Article 280): The Sixteenth Finance Commission (SFC) held its first meeting to discuss the terms of reference (ToR) and other matters. The Union Cabinet has approved the terms of reference for the 16th Finance Commission of India. The approval of ToR will play a crucial role in determining the financial distribution between the central and state governments for the period starting April 1, 2026.
The 16th Finance Commission of India has been formed to define the distribution of the Centre’s tax revenue to the states for a period of five years, beginning from FY 2026-27. It will present its recommendations by 31 October 2025. Below are the details of the Commission’s composition.
This Commission is responsible for reviewing fiscal policies and recommending the distribution of resources between the Centre and states to enhance fiscal stability and economic growth for the five-year award period starting 1 April 2026.
The 16th Finance Commission of India has been set up to redefine the distribution of tax revenues between the Centre and the states for the fiscal period starting FY 2026-27. The Commission, led by a team of distinguished economic experts, is expected to submit its recommendations by 31 October 2025. Below is the composition of the Commission:
<div class="new-fform">
</div>