Finance Minister Nirmala Sitharaman lays 16th Finance Commission report in Lok Sabha

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.