Economy & Bankingv3 · 3 versions
Sixteenth Finance Commission
The Sixteenth Finance Commission sets how the Centre's tax revenue is shared with the states for the five years from April 2026 and, through those states, how much reaches panchayats and municipalities; the rural local-body pot alone is ₹4,35,236 crore.
Last updated 13 August 20269 min read
Latest update
Added the rural local-body grants under the 2026-31 award: ₹4,35,236 crore for panchayats across 28 states, split 80:20 between basic and performance grants, with half the basic grant tied to water and sanitation — plus the Article 280(3)(bb) route that sends that money to a panchayat through its state.
- 16th Finance Commission
- Arvind Panagariya
- fiscal federalism
- tax devolution
- Article 280
- SDRF
- local body grants
- GSDP fiscal deficit
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