The government has appointed former vice-chairman of NITI Aayog and Columbia University professor, Arvind Panagariya, as the chairman of the 16th Finance Commission.

• This announcement comes approximately a month after the government outlined the terms of reference (ToR) for the commission on November 29.
• The 16th Finance Commission has a crucial role in recommending the devolution formulated for tax revenues between the Centre and states.
• According to an official order, the commission, under Panagariya's leadership, is expected to submit its report by October 31, 2025, covering a five-year period from April 1, 2026.

Arvind Panagariya, currently a professor of economics and the Jagdish Bhagwati Professor of Indian political economy at Columbia University, previously served as the first chairman of NITI Aayog from January 2015 to August 2017. During this period, he was also appointed as India's G20 Sherpa.