Finance Commission.

OPINION | Finance Commission paves the way for sustainable urbanisation

The 16th Finance Commission allocates historic grants to urban local governments, enabling smaller cities and towns to plan, develop infrastructure, and urbanise sustainably with state support

FM Sitharaman rebuts states’ divisible pool concerns, highlights higher interest-free capex loans

Finance Minister says only net tax proceeds are shareable; pegs effective capex at Rs 17.1 lakh crore

The 16th Finance Commission’s ambitious fiscal roadmap vs the budget’s cautious glide path

The 16th Finance Commission charts a bolder path to 3.5% fiscal deficit and 47.6% debt-to-GDP by 2030-31 than the Union Budget 2026-27’s more measured steps, yet both signal a shared commitment to long-term fiscal discipline

OPINION | 16th Finance Commission: A shift in approach to grants and tax devolution

16th Finance Commission: A shift in approach that will not help states with lower fiscal capacity. The Commission has discontinued grants-in-aid for revenue needs. Its underlying approach is that fiscal surgery can be performed through blunt instruments

Karnataka is biggest gainer, Madhya Pradesh biggest loser under 16th Finance Commission formula

Large, population-heavy states also see reduced allocations. Uttar Pradesh loses Rs 4,884 crore, while West Bengal sees a cut of Rs 4,701 crore.

OPINION | India’s 16th Finance Commission: Status quo amidst grand bargain

The 16th Finance Commission retains states’ share of central taxes at 41%, adds a new GDP contribution criterion, and emphasises efficiency and fiscal discipline, sparking debate over equity and potential impact on poorer states

Rs 1.6 lakh crore unreleased, Centre sets March 31 deadline for pending 15th finance commission claims

If states are not able to claim the funds within the award period, it automatically results in savings for the government

OPINION | India’s 16th Finance Commission and the equity-efficiency nexus in federalism

India’s 16th Finance Commission and the equity-efficiency nexus in federalism The 16th Finance Commission has finished its report which will shape the flow of resources to states for the next five years. As we await the report, a fiscal economist outlines the tricky terrain of striking a fine balance between equity and incentivising efficiency among states with different capabilities

16th Finance Commission may tie local body grants to further property tax reforms, cleaner air

The commission is unlikely to tinker with the formula for devolution of taxes to states, which will continue to receive 41% of the divisible pool

RBI's T Rabi Sankar joins 16th Finance Commission as part-time member

The appointment is consequent to the resignation of one of the full-time members, former finance secretary Ajay Narayan Jha, on personal grounds.

Majority of states want tax revenue share with Centre hiked to 50%: Finance Commission chairman Arvind Panagariya

At present, states get 41 per cent of the tax revenue while the rest goes to the Centre, the 16th Finance Commission Chairman, Arvind Panagariya, said.

UP's per capita income second lowest, but state finances good: Finance Commission chief

Chairman of the 16th Finance Commission Arvind Panagariya noted that Uttar Pradesh's debt-to-GDP ratio remains at manageable levels, ensuring that interest payments do not eat into the state's developmental expenditure.

Weight of 'Income Distance' criteria may shrink in next Finance Commission's formula

The current finance commission - whose recommendation are valid for 2021-26 – had previously suggested to assign 45% weight to income distance, which resulted in UP and Bihar getting a fairly larger share of taxes as against relatively well-off states like Kerala, Karnataka or Haryana.

States are ultimate beneficiaries of cesses: FM Sitharaman

Nirmala Sitharaman refuted states' allegations on cess utilisation.

Finance Commission’s workings need a greater degree of transparency

India’s federal structure is under stress on several grounds, particularly tax devolution between Centre and states, and among states. Finance Commissions play a critical role in the devolution process. However, a drawback in their approach has been the absence of an adequate level of transparency on the underlying reasons for significant changes in devolution formulae

How did India's top economic policymakers steer the economy through 2024?

Sanjay Malhotra was appointed as the 26th Governor of the RBI on December 11, after serving as Revenue Secretary from December 2022 to 2024.

ICRA projects mild dip in combined grants to states in FY25

ICRA expects the state GST, excise duty, and tax collections to grow by 11-13 percent in FY25

Finance Commission’s vertical devolution needs to be hiked

Finance Commission resource sharing formulas have led to some states consistently losing out on devolution of resources. This puts stress on the federal spirit. One way to ease the situation is to consider raising the devolution of the divisible pool among states to 50 percent from the current 41 percent

Centre releases Rs 1.78 lakh cr tax devolution to states, including advance instalment for festive season

The Union Government has doubled the release to help states manage their finances more effectively during the festive period.

Finance Commission can create more fiscal space for states through grants

16th Finance Commission is working on a resource sharing formula in the backdrop of a squeeze in the share of unconditional transfer of resources from centre to states. This limit fiscal space of states. One way to give states more flexibility is to enhance FC grants, which comes without strings attached