New Delhi, Nov. 29 -- The Union Cabinet on Tuesday discussed terms of reference (ToR) for the 16th Finance Commission and in-principle agreed on some of them, but it is yet to finalise the name of its chairperson and members, officials aware of the late-night development said, requesting anonymity.

The decisions of the Cabinet are expected to be announced tomorrow, they said. The five-year term of the 16th Finance Commission is expected from 2026-27, hence the government has plenty of time to appoint its members. The 15th Finance Commission (2021-26) was chaired by NK Singh.

The Finance Commission is constituted by the President under Article 280 of the Constitution, mainly to give its recommendations on distribution of tax revenues bet...