The Union government is gearing up to constitute the Sixteenth Finance Commission in November this year to recommend the formula for sharing revenues between the Centre and the States for the five-year period beginning 2026-27.

• The critical fiscal panel, which is also tasked with recommending the distribution ratio of revenues between States, along with other terms of reference that the Centre proposes, is to be formed every five years according to Article 280 of the Constitution.
• However, the Fifteenth Finance Commission, which was headed by N.K. Singh, had been given an extended mandate to make recommendations for six years, up till 2025-26.