The Union Cabinet considered the terms of reference for the 16th Finance Commission, but the chairperson and members have yet to be determined. Decisions are expected to be made tomorrow. The 16th Finance Commission's five-year term is scheduled to begin in 2026-27.

The Union Cabinet considered the terms of reference for the 16th Finance Commission, but the chairperson and members have yet to be determined. Decisions are expected to be made tomorrow. The 16th Finance Commission's five-year term is scheduled to begin in 2026-27.

Cabinet decisions are scheduled to be announced tomorrow, they said. The 16th Finance Commission's five-year term is slated to begin in 2026-27, giving the government plenty of time to choose its members. NK Singh presided over the 15th Finance Commission (2021-26).

Under Article 280 of the Constitution, the President appoints the Finance Commission to make recommendations on the division of tax income between the Union and the states, as well as among the states themselves. The commission's work is distinguished by two main features: redressing vertical imbalances between the center's revenue powers and state expenditure duties, and equalization of all public services among states.

According to an official, the ToR of this commission, like the 15th Finance Commission, is expected to be unique and broad in scope. The 15 FC was requested to offer performance incentives for states in sectors such as the power sector, the implementation of direct benefit transfer (DBT) of subsidies, and solid waste management. Furthermore, its Terms of Reference contained a finance structure for defense and internal security.