Updated December 31st, 2023 at 15:11 IST
Former Niti Aayod Vice ChaArvind Panagariya appointed head of 16th Finance Commission
Panagariya, currently teaching economics at Columbia University, has been a vocal supporter of major reforms initiated by the Modi government
Former Niti Aayog vice-chairman Arvind Panagariya has been appointed as the head of the 16th Finance Commission, a government order said on Sunday, December 31. Panagariya, who served as Niti Aayog V-C from January 2015 to August 2017, is a distinguished economist with a wealth of experience. Even though his surprise exit from Niti Aayog in 2017 sparked speculations, Prime Minister Narendra Modi lauded his contributions, praising how he shaped the new body that replaced the Planning Commission.
"I want to especially thank Niti Aayog Vice-Chairman Arvind Panagariya, who is showing how work is done in mission mode... He has done good work and the country will always remember him and his contribution," said PM Modi during a function of CEOs organised by Niti Aayog.
Panagariya, currently teaching economics at Columbia University, has been a vocal supporter of major reforms initiated by the Modi government. He emphasises the need for labor reform and less protectionism to unlock India's potential growth.
Earlier this year, Panagariya expressed optimism about India's economic trajectory, stating, "At this rate, India’s GDP in current dollars will reach $5 trillion in 2026 and $5.5 trillion in 2027. This means that there are good prospects that India will become the world’s third economy by the end of 2026, sooner than nearly all current predictions."
The Finance Commission, which is appointed every five years, plays a crucial role in recommending the formula for sharing taxes between the central and state governments. The current sharing stands at 42 per cent of federal taxes with states. The 16th Finance Commission, headed by Panagariya, is expected to submit its report by October 31, 2025, covering a period of five years commencing on April 1, 2026.
The financial roadmap crafted under Panagariya's leadership will undoubtedly be closely watched by stakeholders across sectors as India aims to solidify its economic standing on the global stage.
Published December 31st, 2023 at 15:11 IST