Current Trends in Indian Economy
16th Finance Commission:
- Union government is gearing up to constitute the Sixteenth Finance Commission in November this year to recommend the formula for sharing revenues between the Centre and the States for the five-year period beginning 2026-27.
About Finance Commission of India:
- Article 280 of the Indian Constitution laid down the provisions related to the constitution of the Finance Commission and the Finance Commission Act of 1951 supplemented the provision of the constitution.
- President Constitutes the Finance Commission every 5 years or at such time he considers necessary.
- The 15th Finance Commission was constituted by the President of India in November 2017, under the chairmanship of NK Singh. Its recommendations will cover a period of five years from the year 2021-22 to 2025-26.
Composition of Finance Commission:
The Finance Commission is a 5 member body that must have:
- A Chairman
- Four Other Members.
