What percentage share of the divisible pool of central taxes has been recommended for the states by the 16th Finance Commission for 2026-31?
41%
The 16th Finance Commission, headed by Arvind Panagariya, has recommended that 41% of the net proceeds of the divisible pool of central taxes be devolved to the states for the award period 2026-27 to 2030-31.
This maintains the same share as recommended by the 15th Finance Commission, keeping the vertical devolution unchanged. The Finance Commission is a constitutional body set up under Article 280 of the Constitution to recommend the distribution of tax revenues between the Union and the states and among the states themselves.
Hence, the correct answer is 41%.
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