Poonam Gupta will form the Advisory Committee of the 16th Finance Commission.

Advisory Committee: The Sixteenth Finance Committee has constituted an advisory committee on Tuesday. The Commission has appointed Dr. Poonam Gupta as the Coordinator of the Advisory Committee. Apart from this, DK Srivastava, Neelkanth Mishra, Poonam Gupta, Franjul Bhandari and Rahul Bajoria have been appointed as advisory board members. The role of the Advisory Committee is to advise the Commission on any Terms of Reference (TOR) or related matters. Monitor and evaluate studies commissioned by the Finance Commission. Assist in the preparation of research papers and research studies to enhance understanding of issues in the Commission's ToR. A Finance Ministry statement said that the Advisory Committee will be set up to look into matters related to the functioning of the Advisory Committee and distribution of equity funds. Their role is to help expand the Commission's scope and understanding by seeking best national and international practices and improving the quality, reach and implementation of its recommendations. Also Read- MSMEs to get big relief in Budget 2024, will govt take this big step? The SFC, headed by economist Arvind Panagariya, has been tasked with distributing central government tax revenue to states for five years starting FY27. The advisory committee will also ensure that states have efficient systems and measures for financing local bodies, on the advice of state finance commissions. The SFC will review national and state disaster management funds and recommend steps to increase consolidated funds from states to panchayats and municipalities. Review national and state disaster management funds. The government has kept the commission's 'terms of reference' narrow, allowing the SFC to make recommendations governing the distribution of tax revenue within constitutional limits. The Sixteenth Finance Commission was constituted on 31 December 2023.