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“The choice of chairman and members will occur quickly and the detailed phrases of reference shall be issued later,” a senior official informed ET.
The fee as soon as constituted, will give its report by October 31, 2025.
The Finance Fee is a constitutional physique that determines the strategy and formulation for distributing tax proceeds among the many Centre and states.
It suggests distribution of taxes and grants and works based mostly on the phrases of reference set by the finance ministry for a five-year interval, after being accepted by the centre.
The advice of the sixteenth Finance fee shall be legitimate for 5 years, from April 1, 2026 to March 31, 2031.The Fifteenth Finance Fee was constituted on November 27, 2017. It made suggestions masking the interval of six years and it is accepted suggestions are legitimate upto the monetary 12 months 2025-26.
“Usually the Finance Fee takes about two years to make their suggestions so it was vital to approve the ToR,” Info and Broadcasting minister Anurag Singh Thakur informed reporters after the cupboard assembly.
The centre constituted advance cell of the sixteenth FC was shaped on November 21 to supervise the formal structure of the Fee and had appointed Ritwik Pandey, a 1998 batch IAS officer of the Karnataka cadre, as an officer on particular responsibility on the advance cell of the Finance Fee.
After {that a} working group was arrange headed by Finance Secretary and Secretary (Expenditure) and comprising Secretary, Financial Affairs, Secretary Income, Secretary Monetary Providers, Chief Financial Adviser, Adviser, NITI Aayog and Further Secretary (Finances) to help in formulation of the Phrases of Reference (ToRs).
Through the consultative course of, views and options have been sought from the State Governments and the Union Territories the ToRs.
