The Union Cabinet, chaired by Prime Minister Narendra Modi, earlier this week approved the Terms of Reference (ToR) of the 16th Finance Commission, which will make recommendations for the five-year period beginning April 1, 2026. Talking to reporters, Somanathan said the working group, which was instrumental in framing the ToR, paid attention to the points raised by states and drafted a ToR that is shorter than those of the previous finance commissions.
