GS2 · Fiscal federalism

16th Finance Commission submits report for 2026-31

17 November 20251 min readCentre-State Finances Fiscal Policy & Budget

Asked by UPSCPrelims 20121 PYQ

UPSC has already asked about this. Read the story with these questions in mind.

Prelims 2012According to the Constitution of India, it is the duty of the President of India to cause to be laid before the Parliament which…Solve with answer

What happened

The Sixteenth Finance Commission, chaired by Dr Arvind Panagariya, submitted its report for 2026-27 to 2030-31 to the President on 17 November 2025 [PIB].
Its terms covered sharing of taxes between Centre and states, distribution among states, grants-in-aid, and disaster management financing [PIB].

Background

The Finance Commission is constituted under Article 280; Article 281 requires its recommendations to be laid before Parliament with an explanatory memorandum [Constitution].

Why it matters

The states’ share of the divisible pool and the formula weights decide how much each state gets, so read the report’s numbers when it is tabled.

How to use this in Mains

GS-II Fiscal federalism

As per PIB (2025-11-17): the Sixteenth Finance Commission, chaired by Dr Arvind Panagariya, submitted its report for 2026-27 to 2030-31 to the President on 17 November 2025.
The states' share of the divisible pool and the formula weights decide how much each state gets, so read the report's numbers when it is tabled.

Quotable data point
The Sixteenth Finance Commission, chaired by Dr Arvind Panagariya, submitted its report for 2026-27 to 2030-31 to the President on 17 November 2025.
PIB: Finance Commission: 16th FC submits report, 17 Nov 2025

Exam angle

UPSC

Prelims: Article 280. · Mains: fiscal federalism.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

Chairman of the 16th FC

Answer (b) & explanation

PIB.

Practice · UPSC

Award period

Answer (b) & explanation

PIB.

Practice · UPSC

Finance Commission is constituted under

Answer (b) & explanation

Source: Constitution of India (Legislative Dept).

Go deeper

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Official source: PIB: Finance Commission: 16th FC submits report, 17 Nov 2025

facts from cited sources only; faculty review pending