New Delhi: The Sixteenth Finance Commission (SFC) has constituted an Advisory Council comprising eminent economists DK Srivastava, Poonam Gupta, Pranjal Bhandari, Rahul Bajirao and Neelkanth Mishra.
The Finance Ministry said in a statement on Tuesday that it will advise the Commission on the Terms of Reference (TOR) and other relevant matters.
Poonam Gupta will be the Convenor of the Advisory Council, whose role will be to assist the Commission in preparation of documents/research studies and also to monitor or evaluate studies undertaken by the Finance Commission, thereby enhancing the Commission’s understanding of the issues involved in its work-by-doing.
The Advisory Council will help broaden the scope and understanding of the Commission by seeking best national and international practices on matters related to fiscal transfers and improve the quality, reach and enforcement of its recommendations, the Finance Ministry statement said.
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The State Finance Commission, headed by economist Arvind Panagariya, is tasked with determining the distribution of the Centre’s tax revenues to the states for five years starting FY27.
This will also ensure that states have efficient systems and measures in place for financing local bodies as advised by the State Finance Commissions.
The SFC will suggest steps to enhance the consolidated funds of the States for panchayats and municipalities and review the National and State Disaster Management Funds.
The government has kept the Commission’s ‘terms of reference’ short, giving the SFC the flexibility to make recommendations governing the sharing of tax revenues within constitutional limits.
Former Expenditure Secretary and member of the 15th Finance Commission AN Jha, former Special Secretary of the Department of Expenditure Annie George Mathew and former Director of the Institute of Economics Growth Manoj Panda have been appointed as full-time members of the SFC.
