It appears you or someone who set this up for you created a 16 TB disk image, a 'drive-inside a file' on your Mac. By default, that is stored on the Boot drive. Then told Time machine to use that "drive" as your backup drive.
Because a disk image file is like a "rubber bag", and grows in spurts as you stuff more data inside it, nominal size of 16TB is not YET an issue, but it will be VERY soon.
That is not a good setup, and wrong for many reasons, the most pressing of which is that you will soon run completely out of drive space.
You need to obtain a real physical External drive, and ADD that as an additional Time machine backup drive. Then every-other backup goes to every-other stand-alone drive until you remove the disk image 'drive'. Once the new drive has made one full backup on the external drive, you can feely remove the disk image as a backup destination, and the new one becomes the only backup drive.
If you have an advanced setup like another backup server on your network (another Mac configured as a backup server or a Network-Attached Storage (NAS) device) perhaps Time machine was just given the wrong destination.