New Delhi, Dec 31 (IANS): The Centre, with the approval of the President, has constituted the Sixteenth Finance Commission.

Former Vice-Chairman of the NITI Aayog, Arvind Panagariya, who is Professor at Columbia University, will be its Chairman while Ranjanam Pandey has been appointed as its Secretary. The other members would be notified separately.

The commission will make recommendations on the distribution between the Union and the states of the net proceeds of taxes which are to be, or may be, divided between them and the allocation between the states of the respective shares of such proceeds.

It will also make recommendations on the principles which should govern the grants-in-aid of the revenues of the states out of the Consolidated Fund of India and the sums to be paid to the states by way of grants-in-aid of their revenues.

The measures needed to augment the consolidated fund of a state to supplement the resources of the panchayats and municipalities in the state on the basis of the recommendations made by the commission of the state will also fall under its purview.

The commission may review the present arrangements on financing disaster management initiatives, with reference to the funds constituted under the Disaster Management Act, 2005 (53 of 2005), and make appropriate recommendations.

The commission has been requested to make its report available by October 31, 2025, covering a period of five years commencing on April 1, 2026.