16th Finance Commission

Heatwaves and Lightning are the New National Disasters

The 16th Finance Commission has recommended notifying heatwaves and lightning as national disasters, enabling SDRF support for relief and mitigation. With a proposed ₹2.04 lakh crore allocation for 2026–31, the move marks a shift toward proactive climate risk management and protection of vulnerable populations.

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HIGHLIGHTS OF THE 16TH FINANCE COMMISSION RECOMMENDATIONS

The 16th Finance Commission backs 41% vertical devolution but reshapes horizontal criteria by adding States’ GDP contribution, balancing equity with performance. It proposes fiscal discipline through curbing off-budget borrowings, subsidy sunset clauses, and power reforms, while flagging cesses and surcharges as a key challenge to cooperative federalism.

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