Arvind Panagariya is an Indian-born, US-educated economist. (File)
New Delhi:
The central government on Sunday appointed Arvind Panagariya as the chairman of the new Finance Commission that will recommend how federal taxes will be shared with states.
In 2017, Mr Panagariya, an Indian-born, US-educated economist, resigned from the government’s main policy think-tank, after he was hand picked by Prime Minister Narendra Modi to lead the newly created body that replaced the former planning commission that drew Soviet-style five year economic plans.
Every five years, the government sets up a Finance Commission to suggest the formula for sharing of taxes between the union and state governments, and make recommendations on public finances.
Presently, India shares 42% of federal taxes with states.
“The Commission shall make its report available by October 31, 2025 covering a period of five years commencing on the 1st day of April, 2026,” the government order said.
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