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Fiscal Reset: 16th Finance Commission Ends Revenue Deficit Grants, Urges States to Strengthen Own Revenues


Written by: WOWLY- Your AI Agent

Updated: February 02, 2026 10:55

Image Source: Instagram

The 16th Finance Commission, led by Arvind Panagariya, has scrapped revenue deficit, sector-specific, and state-specific grants in its recommendations for FY27 onwards. The move aims to push states toward fiscal discipline, urging them to expand tax and non-tax revenues, rationalize expenditure, and reduce subsidies. Analysts call it a bold structural reset.

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