Arvind Panagariya, the former Chairman of NITI Aayog, has recently been named as the head of the 16th Finance Commission.
Finance Commission in India:
The Finance Commission is a constitutional body in India that plays a crucial role in fiscal federalism. Here are a few key pointers about the Finance Commission:
- The Finance Commission is constituted under Article 280 of the Indian Constitution.
- It is formed every five years or at such intervals as deemed necessary by the President.
- The primary objective of the Finance Commission is to address the distribution of financial resources between the Centre and the States.
- The Commission recommends the distribution of net proceeds of taxes between the Centre and the States.
- It suggests principles governing the grants-in-aid to be given to the States out of the Consolidated Fund of India.
- The Commission also evaluates the impact of the Centre's debt on the fiscal autonomy of States.
- The Finance Commission comprises a Chairman and four other members.
- Members are appointed by the President, and they bring diverse expertise, including economics, finance, and public administration.
Panagariya's Vision for India:
Verifying, please be patient.