New Delhi | Finance Minister Nirmala Sitharaman on Sunday laid the 16th Finance Commission report for tax revenue devolution between Centre and states for 2026-2031 in the Lok Sabha.

The Finance Commission, which has been set up under the Constitution, provides a formula for devolution of taxes between Centre and states.

Cesses and surcharge levied by the Centre are not part of the divisible pool.

The Finance Commission is a constitutional body that gives suggestions on Centre-state financial relations and is set up periodically.

The 16th Finance Commission, headed by former Vice-Chairman of Niti Aayog Arvind Panagariya, was set up on December 31, 2023.

Led by Panagariya, Finance Commission members --” Retired bureaucrat Annie George Mathew, economist Manoj Panda, SBI Group Chief Economic Advisor Soumya Kanti Ghosh, and RBI Deputy Governor T Rabi Sankar --” and Secretary to the Commission Ritvik Pandey submitted its report to President Droupadi Murmu on November 17, 2025.