16th Finance Commission Terms of Reference will not be expanded: Finance Secretary Somanathan

Finance Secretary TV Somanathan clarified that the Terms of Reference (ToR) for the 16th Finance Commission would not be expanded. Emphasising the Centre's decision to maintain simplicity in the ToR following feedback from various states, Somanathan highlighted that the announcement of the Chairman and members of the Commission is imminent.

The Finance Secretary elaborated on the states' feedback, indicating that the consensus was that the Commission itself would provide the necessary discipline rather than an exhaustive set of Terms of Reference. Somanathan stressed that delving excessively into defining the Commission's functions in detail was unnecessary.

"Nothing more will come on the FinComm ToR," stated Somanathan, underscoring the consultations held with states and Union Territories (UTs) that led to the development of shorter Terms of Reference. The principle of "less is more" has been adopted to grant the Commission greater leeway and flexibility in its operations.