Latest Updates on 16th Finance Commission

Tracking the shift: Urban local govts see a 230% rise in grant allocations

While the 16th FC has set a new record in allotting funds for ULGs, its counterparts in states continue to struggle. Archis Mohan writes

Phase out universal subsidies, target benefits better: ADB-PwC study

ADB-PwC study urges India to phase out universal subsidies, tighten Aadhaar-linked targeting and audits, and improve fiscal efficiency without hurting stability

Two decades of FRLs fail to rein in debt in several states: World Bank

A World Bank report to the 16th Finance Commission says state fiscal rules improved headline deficits, but debt levels remain high and uneven across several large states

Link power tariff hikes to inflation, suggests expert report to 16th FC

An expert report to the 16th Finance Commission suggests inflation-linked power tariff hikes could ensure timely revenue recovery for discoms and help consumers avoid sharp increases

Scrapping revenue deficit grants may strain fragile states: Economists

Economists warn that removal of revenue deficit grants could hurt fiscally weak and hill states, forcing them to seek alternative support from the Centre

State power discom profits hide a deeper and unresolved fiscal problem

After a decade of losses, the state discoms reported profits of about ₹2,700 crore in 2024-25, a turnaround from the losses of over ₹25,000 crore the previous year

Devolution for growth: 16th FC rejigs inter-state formula with care

State governments have long argued that their space for policy experimentation and autonomy has been shrinking

16th FC charts Union's fiscal path: Falling deficit, rising capex

The Sixteenth Finance Commission has proposed a consolidation roadmap that balances development needs with fiscal prudence

Direct fertiliser subsidy transfer very much on table: Expenditure secy

On Agri Stack, Expenditure Secy V Vualnam says it's progressing well; using IT, farmers will be able to choose exact fertiliser quantities needed, reducing crowding at fertiliser outlets

Transfer design and emerging outcomes of the 16th Finance Commission

The Sixteenth Finance Commission's transfer framework raises questions on equity and fiscal equalisation as rigid tax devolution and limited grants reshape Centre-state finances

Budget 2026: 16th FC avoids rocking the boat, but rewards GDP contributors

The Union Budget for 2026-27 has also placed a clear bet on urbanisation as an engine of growth

16th Finance Commission: Which states gain and lose under new tax formula

The 16th Finance Commission has retained states' 41 per cent share in central taxes, but changes in the devolution formula mean gains for southern and western states and relative losses for several no

Budget 2026: Oppn slams Budget for 'failing' the test of economic strategy

Opposition parties, including ruling dispensations in poll-bound West Bengal, Kerala, Tamil Nadu, said the Budget fails on economic strategy, worsens fiscal stress on states, and undermines federalism

16th FC moots CSS overhaul, discom privatisation, subsidy bill pruning

To create incentives for privatisation, the panel said private investors need to be shielded from the accumulated debt burden after discom takeover

16th FC report: From Andhra Pradesh to West Bengal, who gets how much

Southern states are projected to get a marginal increase

16th Finance Commission retains 41% devolution, introduces GDP criterion

the 16th Finance Commission kept tax devolution at 41%, added GDP contribution as a new criterion, dropped revenue deficit grants, and pushed states towards stronger fiscal discipline