President Droupadi Murmu has appointed Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar as a part-time member of the 16th Finance Commission (XVIFC), according to an official announcement by the Ministry of Finance on June 7. His appointment is in accordance with Article 280(1) of the Constitution and the Finance Commission (Miscellaneous Provisions) Act, 1951.
Sankar will serve on the panel from the date he takes office until either the Commission submits its report or until October 31, 2025—whichever is earlier.
This development follows the resignation of Ajay Narayan Jha, who stepped down from his full-time membership due to personal reasons.
The 16th Finance Commission, which was established on December 31, 2023, is headed by former NITI Aayog Vice Chairman Arvind Panagariya. Other members of the panel include Annie George Mathew and economist Manoj Panda (both full-time), as well as Soumya Kanti Ghosh, Group Chief Economic Advisor of SBI, who is also a part-time member. Ritvik Pandey serves as the secretary, supported by two joint secretaries and one economic advisor.
The commission’s mandate includes recommending the distribution of taxes between the Centre and states, proposing revenue enhancement measures, and evaluating the funding mechanisms for disaster management in accordance with the Disaster Management Act, 2005.
The panel is expected to submit its recommendations by October 31, 2025, covering the five-year period beginning April 1, 2026.
Earlier, the 15th Finance Commission, led by N.K. Singh, had recommended allocating 41% of the Centre’s divisible tax pool to states for the 2021–2026 period, maintaining the same level proposed by the 14th Commission chaired by Y.V. Reddy.
