Arvind Panagariya, former advisor to Prime Minister Narendra Modi, has been appointed as the chairman of a new Finance Commission that will recommend how federal taxes will be shared with states, reported Reuters quoting Union Ministry of Finance notification on 31 December.
He was designated as the head of the 16th Finance Commission on Sunday by the Indian government, while Ritvik Ranjanam Pandey will hold the post of secretary to the commission.
Earlier, from January 2015 to August 2017, Panagariya served as the first Vice Chairman of the NITI Aayog, in the rank of Cabinet Minister. In 2017, Panagariya resigned from the government’s main policy think-tank.
Professor Panagariya is a former Chief Economist of the Asian Development Bank and was on the faculty of the Department of Economics at the University of Maryland at College Park from 1978 to 2003.
During these years, he also worked with the World Bank, IMF, and UNCTAD in various capacities. He holds a Ph.D. degree in economics from Princeton University.
According to details, the 16th Finance Commission’s chairman and other members will hold office from the date on which they respectively assume office up to the date of submission of the report or October 31, 2025, whichever is earlier.
Also, the report of the commission will be made available by October 31, 2025, and cover five years commencing on April 1, 2026.
Every five years, India sets up a Finance Commission to suggest the formula for sharing taxes between the federal and state governments and make recommendations on public finances. Currently, India shares 42 percent of federal taxes with states.
“The Commission shall make its report available by October 31, 2025, covering five years commencing on the 1st day of April 2026,” the government order said.