1. Introduction: Introduction to the Sixteenth Finance Commission

- In accordance with Article 280(1) of the Indian Constitution, the Government of India has established the Sixteenth Finance Commission.

- The government has appointed Dr. Arvind Panagariya, former Vice-Chairman of NITI Aayog and a professor at Columbia University, as its Chairman.

2. Glimpse into the Constitutionally-Mandated Body: The Finance Commission

- The Finance Commission is an integral facet of fiscal federalism in India, facilitated by the Constitution.

- The Commission's essential function, as mandated by Article 280, is to provide recommendations regarding the allocation of net tax revenue between the Union and the States, and amongst the States themselves.

- It is the President’s prerogative to constitute a new Finance Commission every five years. This commission includes a Chairman and four other members, with their qualifications and procedures ascent to Parliament's discretion.

3. Extensive Role: Responsibility Spectrum of the Finance Commission

- One of the foremost duties of the Commission is the distribution of net proceeds. It presides over the allocation of tax proceeds in accordance with the Constitution's Chapter I, Part XII.

- Beyond that, the Commission is responsible for defining the principles governing the distribution of Grants-in-Aid from the Consolidated Fund of India to the States.

4. Expansion of Duties: Amendment to Article 280

- In 1992, the responsibilities of the Commission were broadened due to an amendment to Article 280.

- Post-the amendment, the allocation of additional funds from a State's Consolidated Fund for fortifying the resources of Panchayats and Municipalities also came under its purview. Recommendations from the State's Finance Commission form the basis for this decision.

5. Recap of the Sixteenth Finance Commission's Key Figures

- Chairperson: Dr. Arvind Panagariya, former Vice-Chairman of NITI Aayog and Professor at Columbia University.

- Members: Not yet disclosed.

This event is significant for current affairs and general knowledge as it enhances understanding of the integral part of India's fiscal federalism, the Finance Commission. It also marks a notable appointment of a prominent economist to a key position and provides insight into the commission's crucial role in the equitable distribution of national resources.