16th Finance Commission likely to visit Kerala from December 8 to 10

The 16th Finance Commission headed by Arvind Panagariya is expected to visit Kerala from December 8 to 10.

The State government will submit its proposals — which is being prepared by a committee led by C.P. Chandrasekhar, economist and former Professor, Jawaharlal Nehru University – to the Commission during its visit.

The Commission will also hold consultations with various groups including political parties. The recommendations of the Commission are critical for Kerala which has suffered a drastic decline in tax devolution from 3.875% under the 10th Finance Commission to 1.92% under the 15th Commission.

Ahead of the Commission’s visit, the government organised an all-party meet chaired by Chief Minister Pinarayi Vijayan on Friday (November 22, 2024). The State government’s stand that the share of States in the divisible pool should be raised from 41% to 50%, and that States should get a share from the cesses and surcharges collected by the Centre found support at the meeting.

Representatives of various political parties attended the online meeting.

The Finance Commission is tasked with making recommendations regarding tax devolution, the principles governing grants-in-aid, and measures to augment the consolidated fund of a State to supplement the resources of local bodies.

The 16th FC has as its members Ajay Narayan Jha, Annie George Mathew, Manoj Panda, and Soumya Kanti Ghosh. The 16th Finance Commission’s recommendations will cover a five-year award period starting from April 1, 2026.

Published - November 22, 2024 09:27 pm IST