Finance Commission (Constitutional Bodies).
Syllabus: UPSC Pre GS1: Indian Polity and Governance; Mains GS2
Finance Commission for UPSC: Article 280, composition, vertical and horizontal devolution, the 15th FC formula, the 16th FC (2026-31) and real Prelims…
The Sixteenth Finance Commission has recommended grants of ₹4,35,236 crore for rural local bodies in all 28 States for 2026-31, the Panchayati Raj Ministry told Rajya Sabha on 12 August 2026. Basic and performance grants are in the ratio 80:20. Half the basic grant is tied to sanitation and water; the rest is untied.
UPSC angle: Prelims: FC grant structure.
12 Aug 2026
FC awards set the vertical and horizontal split of taxes.
UPSC angle: Prelims: 16th FC.
7 Jun 2025