At the request of Ajay Narayan Jha’s resignation on June 7, 2025, T Rabi Sankar, RBI Deputy Governor, was made a part-time member of the 16th Finance Commission. Under Arvind Panagariya’s leadership, the Finance Commission decides how tax money will be shared between the federal government and the state administrations. If the Commission’s report isn’t presented before October 31, Sankar will finish on that date. Thanks to his appointment, the Commission can continue performing its tasks smoothly. This step was confirmed by the Finance Ministry to guarantee institutional strength in the Commission’s functions.
Context
-
After Ajay Narayan Jha resigned, T Rabi Sankar was appointed as part-time member to the 16th Finance Commission.
-
With the appointment, the Commission will give valuable advice about future finances in the weeks ahead.
Key Details
-
Appointment
-
The resignation of Ajay Narayan Jha as a full-time member for personal reasons led to his appointment
-
T Rabi Sankar was named a part-time member by the President.
-
-
Role and Tenure
-
He will hold the position until October 31, 2025 or when the final report is ready.
-
Depicts the RBI’s view on fiscal matters in the Commission.
-
-
16th Finance Commission structure
-
The position of Chairman was held by Arvind Panagariya during the NITI Aayog’s formative years (this individual served as the NITI Aayog’s Chairman between 2015-2018 and later went on to be the Vice Chairman).
-
Besides, the team consists of Annie George Mathew, Manoj Panda, and Soumya Kanti Ghosh on a part-time basis.
-
Officers assisting the finance minister include Ritvik Pandey as secretary, two joint secretaries, and one economic advisor
-
-
Related Development: EAC-PM Appointment
-
S Mahendra Dev has been selected as the full-time Chairman of Economic Advisory Council to PM (EAC-PM).
-
After the passing of Bibek Debroy, Suman Bery was holding both positions until Rakesh Sarwal took over.
-
Conclusion
Because of the appointment of T Rabi Sankar to the 16th Finance Commission, fiscal policy making remains steady in the country and supports cooperative federalism. At the same time, these changes in the EAC-PM are part of an effort to strengthen economic advisory bodies with people who have experience.
UPSC Prelims Practice Question (MCQ)
Q. Who among the following was appointed as a part-time member of the 16th Finance Commission in June 2025, following the resignation of Ajay Narayan Jha?
A. Arvind Panagariya
B. S Mahendra Dev
C. T Rabi Sankar
D. Soumya Kanti Ghosh
