Finance Commission of India: the article 280 body and the Sixteenth Commission's composition

Background

As per clause (1) of article 280 of the Constitution, the Finance Commission is to be constituted every fifth year or earlier.
It recommends the distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them, and the allocation between the States of their respective shares.
It recommends the principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India under article 275.
Its third term of reference is the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State.
The Sixteenth Finance Commission is chaired by Dr. Arvind Panagariya.
Smt. Annie George Mathew and Dr. Manoj Panda are full-time Members; Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser of SBI, is a Member; Mr T Rabi Sankar, Deputy Governor of the Reserve Bank of India, is a part-time Member.
The Advance Cell of the 16th FC was formed in the Ministry of Finance on 21.11.2022 to oversee preliminary work.
A Finance Commission normally takes about two years to make its recommendations.