A difficult mandate

Sixteenth Finance Commission will have to do tough balancing

The government’s plans for the Sixteenth Finance Commission (SFC) are taking shape, and contain a few surprises. Most recently, it has announced that eminent economist Arvind Panagariya, who is at Columbia University and had served as vice-chairman of the NITI Aayog shortly after its formation, will take over the reins of the Finance Commission. The announcement related to other members of the Commission is awaited. Professor Panagariya is, of course, intimately familiar with the political constraints on technocratic preferences that operate in New Delhi, including under the current dispensation. Nevertheless, the job of chair of the Finance Commission requires a