Current Affairs - National - Discussion

The Government of India extended the tenure of the 16th Finance Commission, chaired by Arvind Panagariya, by one month to November 30, 2025. This extension shifts the report submission deadline from October 31 to November 30, allowing additional time for finalizing recommendations on tax revenue distribution between the Centre and states for the 2026–2031 period. The Commission is also reviewing fiscal mechanisms for disaster management financing. The extension ensures thorough deliberation on key fiscal policies, equitable devolution, and performance-based grants, reflecting the importance of comprehensive guidance for Centre-State financial relations in the coming fiscal period.