Prime Minister Modi’s Bold Fiscal Blueprint: Steering India’s Economy into a New Era with the 16th Finance Commission

Prime Minister Narendra Modi held a significant meeting with the delegation of the 16th Finance Commission, chaired by renowned economist Dr. Arvind Panagariya, on November 17, 2025. This meeting comes on the heels of the Commission submitting its much-anticipated report outlining the fiscal roadmap for India over the next five years—from 2026 to 2031. The discussion centered on crucial elements of fiscal federalism, including the tax devolution formula, grants-in-aid to states, and broader economic priorities fundamental to ensuring balanced development across India’s federal structure.

 

Key highlights from the meeting and report include:

This milestone event affirms the government's focus on strengthening Centre-State financial relations and setting a clear, pragmatic path for India's economic governance over the next half-decade.

 

Sources:

Press Information Bureau (PIB), Republic World, DD News, The Shillong Times, NDTV Profit.