The Planning Commission is devising a comprehensive package for bringing states out of the debt trap. In a meeting with Twelfth Finance Commission chairman C. Rangarajan, Planning Commission Deputy Chairman K.C. Pant discussed various options of reducing the debt burden of states which includes waiver of part of the outstanding loans, reworking the loan-grant ratio as prescribed in the Gadgil-Mukherjee formula for budgetary support to states and raising the ceiling on market borrowings.