As per the recommendations of the 16th Finance Commission, whose recommendations will apply from 2026-27 to 2030-31, the States’ share has been fixed at _______ of the divisible tax pool.

41%

The correct answer is option 2: 41%

As per the recommendations of the 16th Finance Commission, whose recommendations will apply from 2026-27 to 2030-31, the States’ share has been fixed at 41% of the divisible tax pool.

This maintains the same vertical devolution level set by the 15th Finance Commission. The report, chaired by Dr. Arvind Panagariya, was submitted to the President in November 2025 and tabled in Parliament during the Union Budget on February 1, 2026.