Latest Updates on 16th Finance Commission

Finance Commission changes pose transition risks for states' fiscal balance

The 16th Finance Commission throws up a transition challenge for states facing strict fiscal limits

India must confront the fiscal risks of an expanding freebie culture

As subsidies and cash transfers surge, the Supreme Court and Finance Commission warn that unchecked freebies risk straining state finances and long-term growth

As 16th FC boosts southern share, delimitation may face fewer hurdles

More than three weeks after the 16th FC's recommendations became public, the southern states are no longer complaining about an unfair deal in the way central taxes are distributed among them

Strengthening local bodies: Increasing grants will not be enough

A significant design change is the increase in untied funds. The untied component across these four grants is about 52 per cent compared with only 21 per cent under the 15th FC

Punjab needs a fiscal reset to avert debt spiral: Study to 16th FC

An ISB evaluation submitted to the 16th Finance Commission flags rising debt, subsidy pressures and weak revenues in Punjab, warning that the debt-to-GSDP ratio could cross 60 per cent by 2030-31

Karnataka PSU borrowing model a template for states: World Bank

Karnataka's move to include PSU and SPV debt in state liabilities offers a template to curb off-budget borrowings and improve fiscal transparency, a World Bank report says

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