Dr. Arvind Panagariya has been appointed as the Chairman of the Sixteenth Finance Commission by the Government of India.

Dr. Arvind Panagariya is an Indian-American economist and a professor at Columbia University. He has previously served as the Vice Chairman of the NITI Aayog, the premier policy think tank of the Government of India.

Here is a detailed explanation of his appointment:

Background:
- The Finance Commission is a constitutional body that is responsible for recommending the distribution of financial resources between the central government and the state governments.
- The Commission is appointed every five years and consists of a Chairman and four other members.
- The Chairman of the Finance Commission holds a crucial position as they play a key role in determining the financial arrangements between the central and state governments.

Dr. Arvind Panagariya's Appointment:
- Dr. Arvind Panagariya was appointed as the Chairman of the Sixteenth Finance Commission by the Government of India.
- His appointment was made in 2017.
- As the Chairman, he is responsible for leading the Commission and ensuring that its recommendations are in line with the objectives set by the government.

Key Responsibilities:
- The Chairman of the Finance Commission has several responsibilities, including:
- Determining the principles and criteria for the distribution of financial resources.
- Assessing the revenue deficit and grants-in-aid to states.
- Reviewing the fiscal position of the central and state governments.
- Making recommendations on matters related to fiscal federalism.

Importance of the Finance Commission:
- The Finance Commission plays a crucial role in ensuring a fair and equitable distribution of financial resources between the central and state governments.
- Its recommendations have a significant impact on the fiscal health of both the central and state governments.
- The Commission's recommendations are based on various factors such as population, income levels, and the fiscal capacity of the states.

Conclusion:
Dr. Arvind Panagariya's appointment as the Chairman of the Sixteenth Finance Commission by the Government of India highlights the importance of his role in determining the financial arrangements between the central and state governments. His expertise and experience in the field of economics make him well-suited for this position.