SIXTEENTH FINANCE COMMISSION ESTABLISHES ADVISORY PANEL FOR BROADENED SCOPE

Why in the news?

The Sixteenth Finance Commission forms an advisory panel to aid in Terms of Reference, research, and broaden its scope.
Panel led by Poonam Gupta includes experts from EY, Axis Bank, HSBC, and Bank of America for diverse inputs.

Source: researchgate

About 16th Finance Commission:

Constituted under Article 280 (1) of the Constitution by the President of India.
Chairman: Arvind Panagariya, former vice-chairman of NITI Aayog.
Tenure: 5 years starting from April 1, 2026.
Objectives: Address vertical imbalances in taxation and expenditure between the Centre and States.

Key points about the Finance Commission:

Constitutional Status: Established under Article 280 of the Constitution of India.
Appointment and Tenure: Constituted by the President of India every five years or as deemed necessary.
Nature: Functions as a quasi-judicial body.
Advisory Role: Recommendations are advisory in nature and not binding.
Composition: Consists of a Chairman and four members.
Qualifications: Members should have qualifications in law (preferably High Court judges), finance, administration, or economics.

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