<h1>Punjab's bid for higher 2025-26 borrowing, GST and rural fund relief, police aid, and MGNREGA rollback sought</h1> Punjab sought permission under the FRBM framework for a one-time enhancement of its borrowing limit by 1% of GSDP for 2025-26 on grounds of natural disaster and national security exigencies, which would permit additional market borrowing to fund rehabilitation and reconstruction. Punjab requested special central assistance of Rs 1,000 crore for police modernisation, emergency response strengthening, and anti-drone deployment, which would finance counter-cross-border threat and narcotics-control capabilities. Punjab demanded immediate release of pending Rural Development Fund dues computed up to June 2025, which would restore funding for rural roads and infrastructure works. Punjab urged creation of a predictable GST stabilisation/compensation mechanism for structural post-GST 2.0 revenue erosion, which would offset continuing state revenue losses. Punjab opposed proposed MGNREGA framework changes and sought restoration of the original demand-driven funding pattern, which would maintain the employment guarantee and limit cost shifting to states.