The Second commission on Centre-State Relations was set-up by the Government of India in April 2007 under the Chairmanship of Madan Mohan Punchhi, former Chief Justice of India to examine the issues of Centre-State relations.
Recommendations
There should be greater flexibility to states in relation to subjects in the State List and “transferred items” in the Concurrent List.
The period of six months should be made applicable for the President to decide on assenting or withholding assent to a state bill reserved for consideration of the President.
Governors should be given a fixed tenure of five years and their removal should not be at the pleasure of the Government at the Centre.
Inter-State Council should be made a credible, powerful and fair mechanism for management of interstate and Centre-state differences.
The Zonal Councils should meet at least twice a year with an agenda proposed by states concerned to maximise co-ordination and promote harmonisation of policies and action having inter- state ramification.
The Empowered Committee of Finance Ministers of States proved to be a successful experiment in inter-state coordination on fiscal matters. There is need to institutionalise similar models in other sectors as well. A forum of Chief Ministers, Chaired by one of the Chief Minister by rotation can be similarly thought about particularly to co-ordinate policies of sectors like energy, food, education, environment and health.
New all-India services in sectors like health, education, engineering and judiciary should be created.
The Central Government should review all the existing cesses and surcharges with a view to bringing down their share in the gross tax revenue.
