NEW DELHI: Finance Minister Nirmala Sitharaman on Sunday laid the 16th Finance Commission report for tax revenue devolution between Centre and states for 2026-2031 in the Lok Sabha.
The Finance Commission, which has been set up under the Constitution, provides a formula for devolution of taxes between Centre and states.
Cesses and surcharge levied by the Centre are not part of the divisible pool.
The Finance Commission is a constitutional body that gives suggestions on Centre-state financial relations and is set up periodically.
The 16th Finance Commission, headed by former Vice-Chairman of Niti Aayog Arvind Panagariya, was set up on December 31, 2023.
Led by Panagariya, Finance Commission members --Retired bureaucrat Annie George Mathew, economist Manoj Panda, SBI Group Chief Economic Advisor Soumya Kanti Ghosh, and RBI Deputy Governor T Rabi Sankar--” and Secretary to the Commission Ritvik Pandey submitted its report to President Droupadi Murmu on November 17, 2025.