Annie George Mathew, a senior of the Indian Audit and Accounts Service (IA & AS) of the 1988 Batch has been appointed as a member of the Sixteenth Finance Commission on Tuesday, January 30th, 2024.
Annie George Mathew recently retired as the Special Secretary Expenditure from the Ministry of Finance, Government of India. She has over 34 years of experience in areas of Public Finance, Financial Management, Government Audit and Accounts, and Public Procurement including Defense Capital Acquisitions, Human Resource Management
The 16th Finance Commission was constituted on 31.12.2023 with Shri Arvind Panagariya, former Vice-Chairman, NITI Aayog as its Chairman. According to a government order issued on January 30, 2024, three full-time members of the 16th Finance Commission include former Expenditure Secretary Ajay Narayan Jha; former Department of Expenditure official Annie George Mathew; and Niranjan Rajadhyaksha, executive director of policy consultancy firm, Artha Global. Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor, State Bank of India will serve as a Part-time member of the powerful financial body.
“The chairman and other members of the commission shall hold office from the date on which they respectively assume office up to the date of the submission of report or October 31, 2025, whichever is earlier,” the order from President of India, Droupadi Murmu appointing members to the constitutional body stated.
The Sixteenth Finance Commission has been requested to make its recommendations available by October 31, 2025, covering an award period of 5 years commencing 1st April, 2026. The Finance Commission usually takes about two years to consult stakeholders in the States and Centre and arrive at their conclusions.
The Finance Commission mainly decides the tax-sharing formula between the Centre and the states. The Sixteenth Finance Commission’s terms of reference include a review of the present arrangements for financing disaster management initiatives and mooting measures to augment States’ consolidated funds to supplement resources available with panchayats and municipalities.
Per reports, in November last year, the Indian Cabinet chaired by Prime Minister Narendra Modi had approved the Terms of Reference for the 16th Finance Commission. As per the terms of reference (ToR), “The Finance Commission shall make recommendations as to the following matters, namely: The distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under Chapter I, Part XII of the Constitution and the allocation between the States of the respective shares of such proceeds.”
The commission is expected to make recommendations on the “principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India and the sums to be paid to the States by way of grants-in-aid of their revenues under article 275 of the Constitution for the purposes other than those specified in the provisos to clause (1) of that article,” according to a statement issued after the Union Cabinet meeting on November 29.
Ms. Mathew was the Government’s nominee on the Boards of the Pension Fund Regulatory and Development Authority (PFRDA) and Indian Overseas Bank (IOB). She had served earlier on the Board of State Bank of Hyderabad.
She has varied experience in the Indian Audit and Accounts Department through her postings within the country and abroad. She has also led audit teams working with different international and multi-lateral organizations like the United Nations, and UNHCR in Europe, Africa, and Asia. She has been a member of the International Standards Laying Committees on Auditing.
With her vast experience of working in public finance at various levels in the Ministry of Finance and her exposure to state finances during her tenure in various Accountant General Offices in the states of Uttar Pradesh, Andhra Pradesh, Madhya Pradesh, Orissa, Delhi, Ms. Mathew has a deep understanding of India’s Federal and State finances.
Ms. Mathew graduated from Miranda House and completed post-graduation from the University of Delhi and after that, joined India’s civil services as an IA & AS Officer.