(MENAFN- IANS) New Delhi, Nov 17 (IANS) Dr Arvind Panagariya-led 16th Finance Commission on Monday submitted its report for 2026-31 to President Droupadi Murmu here.

The 16th Finance Commission was constituted by the government on December 31, 2023, with former NITI Aayog vice chairman Dr Panagariya as its Chairman. The Commission has four members and is assisted by Secretary Ritvik Pandey, two joint secretaries and one economic advisor.

The report by the panel was due by October 31. The government later extended the tenure of the 16th Finance Commission by one month till November 30.

“Members of the 16th Finance Commission, led by its Chairman, Dr Arvind Panagariya, called on President Droupadi Murmu and submitted the Commission's report for 2026-31,” posted the X handle of the President of India.

The 16th Finance Commission made recommendations on the distribution of taxes between the Centre and states for a 5-year period starting April 1, 2026.

Meanwhile, the Union government released an additional tax devolution of Rs 1,01,603 crore to state governments last month during the festive season. The decision was taken in view of the festive season to enable states to accelerate capital spending and finance their development and welfare-related expenditure.

Uttar Pradesh, the nation's most populous state, got the highest -- Rs 18,227 crore, followed by Bihar (Rs 10,219 crore), Madhya Pradesh (Rs 7,976 crore), West Bengal (Rs 7,644 crore), Maharashtra (Rs 6,418 crore), and Rajasthan (Rs 6,123 crore).

Andhra Pradesh (Rs 4,112 crore), Odisha (Rs 4,601 crore), Tamil Nadu (Rs 4,144 crore), Karnataka (Rs 3,705 crore), and Jharkhand (Rs 3,360 crore) also received significant additional tax devolution.

Earlier, the Finance Ministry said that the Centre had transferred Rs 4,28,544 crore to state governments as devolution of share of taxes during April-July, which is Rs 61,914 crore higher than the previous year.

Notably, the Central government had received Rs 10,95,209 crore during the period, which comprises 31.3 per cent of the corresponding budget estimates (BE) for 2025-26.

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