The 16th Finance Commission submitted its report to the President of India on November 17, 2025. The report contains sixty-seven recommendations covering areas such as Assessment of Union Finances, Vertical and Horizontal devolution in respect of Sharing of Tax Revenue, Assessment of State Finances and Grants-in-aid, Local Body Grants, Financing of Disaster Management, The Path to Macro and Fiscal Stability, Reforms in the Power Sector, Containing and Making Subsidies Efficient and Public Sector Enterprises Reforms. The report, along with an Explanatory Memorandum regarding action taken, was laid before both Houses of Parliament on February 1, 2026.
Key Entities Referenced
16th Finance Commission: The central entity responsible for making recommendations on financial relations between the Union and State governments.
Ministry of Finance: The ministry responsible for reviewing the recommendations of the 16th Finance Commission and possibly acting upon them.
16th Finance Commission Report: The report submitted by the Sixteenth Finance Commission, containing recommendations on various aspects of Union and State finances.
Parliament: The legislative body before which the report of the 16th Finance Commission is laid.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 349
TO BE ANSWERED ON MONDAY, THE 2ND FEBRUARY, 2026
MAGHA 13, 1947 (SAKA)
16th FINANCE COMMISSION REPORT
349. SHRI. BALASHOWRY VALLABHANENI:
Will the Minister of FINANCE be pleased to state:
a) whether the 16th Finance Commission has submitted its Report recently;
b) if so, the details thereof;
c) the details of recommendations made by the 16th Finance Commission; and
d) whether the Finance Ministry has any plan to review the above Report and if so, the details
thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) and (b): Yes. The Sixteenth Finance Commission submitted its Report to the President of India
on November 17, 2025.
(c) and (d): The 16th Finance Commission has made sixty-seven recommendations covering the
following areas- Assessment of Union Finances, Vertical and Horizontal devolution in respect of
Sharing of Tax Revenue, Assessment of State Finances and Grants-in-aid, Local Body Grants,
Financing of Disaster Management, The Path to Macro and Fiscal Stability, Reforms in the Power
Sector, Containing and Making Subsidies Efficient and Public Sector Enterprises Reforms. The
Report of the 16th Finance Commission along with the Explanatory Memorandum as to the action
taken on the report of the Commission by GoI has been laid before both the Houses of the
Parliament on February 1, 2026.
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