Sixteenth Finance Commission submits its Report to the President of India
17th November 2025
The Sixteenth Finance Commission (XVIFC) was constituted by the President of India in pursuance of clause (1) of article 280 of the Constitution. The XVIFC has submitted its Report to the President of India. Thereafter, the XVIFC also presented a copy of the report to the Prime Minister and to the Union Finance Minister
As per the terms of reference (ToR), the XVIFC was mandated to give its report covering a period of five years commencing on the 1st day of April, 2026 making recommendations on the distribution of the net proceeds of taxes between the Union and the States as well as the allocation between the States of the respective shares of such proceeds, grants-in-aid to States, review arrangements on financing Disaster Management initiatives, etc.
Accordingly, during its tenure, the XVIFC analysed the finances of the Union and States in detail and has come up with a report after wide-ranging consultations with the Union Government, State Governments, Local Governments at different tiers, Chairpersons and Members of previous Finance Commissions, academic institutions of eminence, multi-lateral institutions, Advisory Council to the Commission, and other domain experts
This report has been organised in two volumes where Volume I contains the recommendations as per the TOR and the accompanying annexures are in Volume II
The report shall be available in the public domain once it is tabled in the Parliament by the Union Finance Minister under Article 281
Read:
Cabinet approves TOR for the Sixteenth Finance Commission (29th November 2023)