Arvind Panagariya Receives Guard of Honour in Punjab
Chairman of the 16th Finance Commission Welcomed
Arvind Panagariya, the Chairman of the 16th Finance Commission, was given a ceremonial Guard of Honour at Shaheed Bhagat Singh International Airport in Sahibzada Ajit Singh Nagar, Punjab. He was accompanied by other distinguished members of the Finance Commission.
Formation of the Advisory Council
The 16th Finance Commission has formed an Advisory Council with five members: DK Srivastava, Neelkanth Mishra, Poonam Gupta, Pranjul Bhandari, and Rahul Bajoria. Poonam Gupta will serve as the Convenor of the Advisory Council. The council will advise the Commission on various Terms of Reference (ToR) and related subjects, assist in preparing research papers, and monitor studies commissioned by the Finance Commission.
Mandate and Recommendations
The 16th Finance Commission, constituted by the President on December 31, 2023, will make recommendations for a five-year period starting April 1, 2026. It will also review current disaster management funding arrangements and make appropriate recommendations. The 15th Finance Commission recommended that 41% of tax collections be allocated to states, a process known as vertical devolution. The distribution among states, or horizontal devolution, is based on criteria such as demographic performance, income, population, area, forest and ecology, and fiscal deficit measures.
Doubts Revealed
Arvind Panagariya -: Arvind Panagariya is an important person who helps make decisions about money and taxes for the country. He is the Chairman of the 16th Finance Commission.
16th Finance Commission -: The 16th Finance Commission is a group of people who decide how money collected from taxes should be shared between the central government and the states in India.
Guard of Honour -: A Guard of Honour is a special ceremony where soldiers stand in a line to show respect to an important person.
Shaheed Bhagat Singh International Airport -: This is an airport in Punjab, named after a famous Indian freedom fighter, Bhagat Singh.
Advisory Council -: An Advisory Council is a group of experts who give advice and help the Finance Commission make good decisions.
Poonam Gupta -: Poonam Gupta is the leader of the Advisory Council for the 16th Finance Commission. She helps guide the commission with her expertise.
Disaster management funding -: This is money set aside to help people and places recover from natural disasters like floods or earthquakes.
15th Finance Commission -: The 15th Finance Commission was the previous group that decided how tax money should be shared. They recommended that 41% of the tax money should go to the states.
