16वें वित्त आयोग की शर्तें पिछले वित्त आयोगों से कैसे अलग हैं? हाल के वर्षों में विभिन्न राज्यों में आर्थिक असमानताओं को कम करने वाले कारकों की जांच करते हुए, क्रमिक वित्त आयोग अनुपातहीन असमानताओं को कम करने में सहायक रहे हैं? In what ways are the terms of reference of the 16th Finance Commission different from that of the previous Finance Commissions? Despite increasingly progressive devolution by subsequent Finance Commissions, examine the factors that propel economic disparities across various States.

Arvind Panagariya as its chairman have to provide the formula for distribution of taxes for the period 2026-2031.

Terms of Reference of 16th Finance Commission

These items are different from Previous Finance Commissions :-

previous finance Commissions:

5th Finance Commission: Allotment of funds to some states Categorised as special category states

14th Finance Commission: Increased vertical devolution from ~32% to 42%. and 3CS under status was no longer used.

used the 1971 population as criteria

15th Finance Commission:

— Used 2011 population census. Also population measures and tax efforts considered in criteria.

However, some factors has led to economic disparities among states :

i) Increasing cess and surcharge reducing the divisible pool of taxes

ii) Income distance given high weightage

iii) Dependence on the aid — aid curse — despite receiving funds, no effort to maintain fiscal consolidation and growth.

iv) High revenue expenditure leading to fiscal deficit of states. (⊕) OPS announced in some states .

16 Finance commission forms important part of fiscal federalism of the country. States must manage their finances to reduce disparities