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16th Finance Commission of India

Overview

  • Constitution: Formed under Article 280 of the Indian Constitution.
  • Purpose: To provide recommendations on the distribution of net proceeds of taxes between the Union and the States (Vertical Devolution) and among States (Horizontal Devolution).
  • Period: Recommendations will cover a five-year period starting from April 1, 2026.
  • Deadline: The Commission is requested to make its report available by October 31, 2025.

Key Appointments

PositionNameBackground
ChairmanArvind PanagariyaFormer Vice-Chairman of NITI Aayog
SecretaryRitvik Ranjanam PandeyIAS Officer
Full-time MemberAjay Narayan JhaFormer member of 15th FC
Full-time MemberAnnie George MathewFormer Special Secretary (Expenditure)
Full-time MemberNiranjan RajadhyakshaExecutive Director, Artha India
Part-time MemberSoumya Kanti GhoshGroup Chief Economic Advisor, SBI

Terms of Reference (ToR)

  • Distribution of Taxes: Allocation of the share of central taxes among states.
  • Grants-in-aid: Principles governing the grants-in-aid of the revenues of the States out of the Consolidated Fund of India.
  • Panchayats and Municipalities: Measures needed to augment the Consolidated Fund of a State to supplement the resources of local bodies.
  • Disaster Management: Reviewing the present arrangements for financing Disaster Management initiatives with reference to the funds constituted under the Disaster Management Act, 2005.

India’s First Homegrown Gene Therapy for Cancer (NexCAR19)

Technical Details

  • Type: CAR-T cell therapy (Chimeric Antigen Receptor T-cell therapy).
  • Development: Developed by ImmunoAdoptive Cell Therapy (ImmunoACT), an IIT Bombay-incubated company, in collaboration with Tata Memorial Hospital.
  • Mechanism:
    1. T-cells (immune cells) are extracted from the patient's blood.
    2. Genetically modified in a lab to express specific proteins (CARs) on their surface.
    3. Modified cells are re-infused into the patient to target and kill cancer cells.

Key Features

  • Target: Specifically targets B-cell malignancies (Leukemia and Lymphoma).
  • Approval: Received market authorization from the Central Drugs Standard Control Organization (CDSCO) in late 2023.
  • Cost Efficiency: Estimated to cost ₹30–40 lakh, significantly lower than international treatments (which can exceed ₹3–4 crore).

Project Akashdeep (Indigenous Surface-to-Air Missile System)

Project Specifications

  • Objective: To enhance the Indian Army’s air defense capabilities through indigenous technology.
  • System Name: Akash Weapon System.
  • Range: Short-range Surface-to-Air Missile (SAM) capable of engaging targets up to 25 km.

Deployment and Infrastructure

  • Integration: Integration of radar and communication systems to provide a multi-layered defensive shield.
  • Command and Control: Features automated firing and tracking systems to engage multiple aerial targets simultaneously (drones, fighter jets, helicopters).
  • Indigenization: Part of the "Atmanirbhar Bharat" initiative to reduce reliance on imported defense systems like the Russian S-400.