THE 16th Finance Commission (FC), constituted on December 31, 2023, with Aravind Panagariya as chairman, is currently preparing its report. The FC has already started visiting state governments and holding discussions on the memorandum submitted by the state governments. Recommendations of the 16th FC will cover a five-year period starting on April 1, 2026.Article 280(1) of the Indian Constitution outlines how a Finance Commission is established.