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PGPPM Policy Talk Series examines the XVI Finance Commission and its implications for India’s cities

The session was delivered by Prabhat Kumar, Director, and Apula Singh, Senior Manager, at Janaagraha Centre for Citizenship and Democracy

18 February 2026, Bengaluru: The Post Graduate Programme in Public Policy and Management (PGPPM) at IIM Bangalore hosted a session under its Policy Talk Series titled ‘XVI Finance Commission: What It Means for India’s Cities’ on 18 February 2026. The session brought together policy practitioners and students to explore the evolving architecture of urban public finance in India and the implications of the Sixteenth Finance Commission for municipal governance.

The session was delivered by Prabhat Kumar, Director, Public Finance Management, and Apula Singh, Senior Manager, Public Finance Management, Janaagraha Centre for Citizenship and Democracy. Drawing on their engagement with the Commission and field experience in municipal reform, the speakers outlined how intergovernmental transfers, performance-linked grants, and incentives for own-source revenue can reshape the fiscal capacity of urban local bodies.

The discussion highlighted the growing role of Finance Commission transfers in supporting essential urban services such as water supply, sanitation, and waste management, particularly for smaller cities with limited internal revenue capacity. The speakers emphasized that the revised grant architecture and performance criteria aim to strengthen fiscal discipline, enhance the predictability of transfers, and incentivize improved municipal financial management.

Prabhat Kumar, Director, Janaagraha Centre for Citizenship and Democracy, said,
“Performance-linked transfers and stronger own-source revenues are essential to building fiscally resilient cities capable of delivering reliable urban services at scale.”

Participants engaged in a discussion on the broader implications of these reforms for service delivery, infrastructure investment, and planned urbanisation. The session also examined the importance of strengthening state–municipal fiscal relations and building institutional capacity within urban local bodies to effectively utilize increased fiscal transfers.

The Policy Talk Series at PGPPM continues to serve as a platform for evidence-based dialogue on contemporary public policy challenges, bringing practitioners and scholars together to advance informed governance discourse in Bengaluru.

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