The Sixteenth Finance Commission (SFC) has recently announced the formation of an advisory council comprising renowned economists D.K. Srivastava, Poonam Gupta, Pranjal Bhandari, Rahul Bajirao, and Neelkanth Mishra.
According to a statement by the finance ministry, this advisory council will provide guidance to the commission on various topics including the Terms of Reference (ToR).
Poonam Gupta will serve as the Convenor of the Advisory Council, playing a crucial role in assisting the Commission in research studies, papers, and evaluating commissioned studies to enhance the Commission’s understanding of its ToR.
The advisory council aims to expand the Commission’s perspective by learning from national and international best practices concerning fiscal devolution, ultimately improving the quality and impact of its recommendations.
Are you curious to learn more? Check out the challenges faced by the Sixteenth Finance Commission.
Under the leadership of economist Arvind Panagariya, the SFC will be responsible for determining the distribution of the Centre’s tax revenue to states for a five-year period starting FY27.
In addition, the SFC will work towards establishing efficient funding mechanisms for local bodies as suggested by state finance commissions.
The commission will also focus on enhancing states’ consolidated funds for panchayats and municipalities and reviewing national as well as state disaster management funds.
The government has granted the SFC flexibility in making recommendations within constitutional limits while keeping the ‘terms of reference’ concise.
Notable figures like A.N. Jha, Annie George Mathew, and Manoj Panda, with extensive experience in finance and economics, have been appointed as full-time members of the SFC.
