• 04 Feb 2026 06:30 PM
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16th Finance Commission: What states asked for, and what they got, explained in 6 charts

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The 16th Finance Commission has decided how centre’s tax revenues will be distributed among states for the next 5 years. State submissions to the panel show both convergence and divergence.

The 16th Finance Commission has decided how centre's tax revenues will be distributed among states for the next 5 years. State submissions to the panel show both convergence and divergence.

"), pointer; position: relative; box-shadow: none !important;">A key subtext of Budget 2026 is the evolving fiscal compact between the Centre and the states—an arrangement recalibrated every five years by the Finance Commission. FY27 marks the first year of the five-year award period of the 16th Finance Commission (FC), which, like its predecessors, had to reconcile competing demands from a diverse set of stakeholders.