Arvind Panagariya, formerly the Vice Chairman of NITI Aayog and a Columbia University Professor, has been designated as the Chairman of the 16th Finance Commission, as per the official notification from the Union Ministry of Finance. The commission is tasked with advising on the allocation of tax proceeds between the Union and the States.
From January 2015 to August 2017, Panagariya held the position of the inaugural Vice Chairman of NITI Aayog, equivalent to the rank of a Cabinet Minister. During this period, he also represented India as the G20 Sherpa, leading the negotiations for G20 communiques in the presidencies of Turkey (2015), China (2016), and Germany (2017).
Panagariya, a former Chief Economist of the Asian Development Bank, has an extensive background, having been part of the faculty at the University of Maryland at College Park from 1978 to 2003. He also contributed to international organizations such as the World Bank, IMF, and UNCTAD, in various capacities, and holds a Ph.D. in economics from Princeton University.
The Finance Commission’s Secretary, Ritvik Ranjanam Pandey, affiliated with the finance ministry, was also mentioned in the notification. The Chairman and other members are slated to serve until the submission of the report or October 31, 2025, whichever is earlier.
The commission, as outlined in the notification, has the authority to reassess the current financing arrangements for disaster management initiatives, particularly in relation to funds established under the Disaster Management Act, 2005 (53 of 2005), and provide suitable recommendations. The final report, covering a span of five years from April 1, 2026, is expected to be released by October 31, 2025.