By The Sampadak Express
The Union Finance Ministry has announced the appointment of Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar as a part-time member of the 16th Finance Commission (XVIFC). This appointment follows the resignation of full-time commission member and former finance secretary Ajay Narayan Jha, who stepped down due to personal reasons.
In an official statement, the ministry said, “The President has appointed T Rabi Sankar, Deputy Governor, Reserve Bank of India, as a part-time Member of the 16th Finance Commission.” Sankar’s tenure will continue until the Commission submits its report or until October 31, 2025 whichever comes earlier.
The 16th Finance Commission, constituted on December 31, 2023, is chaired by former NITI Aayog Vice Chairman Dr. Arvind Panagariya. Other members include full-time members Annie George Mathew, a retired bureaucrat, and noted economist Dr. Manoj Panda. State Bank of India’s Group Chief Economic Advisor Dr. Soumya Kanti Ghosh also serves as a part-time member. The Commission is supported by Secretary Ritvik Pandey, along with two joint secretaries and one economic advisor.
The Commission’s report is expected by October 31, 2025, and will guide the financial distribution between the Centre and the states for a five-year period starting April 1, 2026. Apart from recommending the formula for tax devolution, the panel is also tasked with suggesting measures to augment revenues and reviewing funding mechanisms for disaster management under the Disaster Management Act, 2005.
The Finance Commission is a constitutional body mandated to evaluate and recommend the sharing of financial resources between the central and state governments. The previous (15th) Finance Commission, led by NK Singh, had proposed a 41% share of the divisible tax pool for states, a recommendation that was consistent with the 14th Finance Commission under YV Reddy.
