On 31 October 2025, the 16th Finance Commission will submit recommendations for 2026–31. Punjab, Himachal Pradesh, and West Bengal have pressed for debt relief, larger grants, and revised devolution criteria to address rising fiscal stress and ecological risks.

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• Punjab seeks ₹75,000 crore development grant, half for capital formation
• State debt-to-GSDP ratio projected at 44.5% in 2025-26
• Also requests ₹18,000 crore crop diversification, ₹5,000 crore stubble burning
• Demands ₹8,800 crore against drug abuse and narco-terrorism
• ₹6,000 crore asked for industry revival, incentives for border areas
• Proposes ₹19,426 crore devolution for rural and urban local bodies
• Seeks Centre-state disaster fund sharing revised to 90:10 from 75:25
• Himachal Pradesh asks ₹10,000 crore annual revenue deficit grant
• Demands ₹50,000 crore Green Fund to reward ecological services
• Calls for new disaster risk index tailored for Himalayan states
• West Bengal wants income distance weight raised to 50% from 45%
• Proposes urbanisation as criterion with 7.5% weight, SC/ST adjustment