Montek Singh Ahluwalia, the erstwhile Planning Commission deputy chairman, batted for a transfer of a portion of central taxes to the third tier of the government -- panchayats and other local bodies. At a panel discussion with former chief economic advisor Arvind Subramanian, he said various arrangements of the Finance Commission had ignored this aspect. The 16th Finance Commission is interacting with stakeholders to work out its recommendations for transferring resources from the Centre to the states for 2026-27