The 16th Finance Commission recommended grants of ₹9.47 lakh crore over five years, only for local bodies and disaster management, ending revenue deficit, sector-specific and State-specific grants. Local bodies get ₹7,91,493 crore (₹4.4 lakh crore rural, ₹3.6 lakh crore urban), split 80% basic and 20% performance-based. Special infrastructure grants of ₹56,100 crore target wastewater systems, and ₹10,000 crore is set aside as an urbanisation premium. A ₹2,04,401 crore disaster corpus is shared 90:10 for north-eastern and Himalayan States and 75:25 for others. It proposed adding heatwaves and lightning to the nationally notified disasters, and introduced a forest-growth measure.