- A permanent Inter-State Council called the Inter-Governmental Council should be set up under Article 263.
- Article 356 (President’s Rule) should be used very sparingly, in extreme cases as a last resort.
- The institution of All-India Services should be further strengthened and more of such services should be created.
- The residuary powers of taxation should continue to remain with the Parliament, while the other residuary powers should be placed in the Concurrent List.
- When the President withholds his/her assent to the state bills, the reasons should be communicated to the state government.
- The National Development Council (NDC) should be renamed and reconstituted as the National Economic and Development Council (NEDC).
- The zonal councils should be constituted afresh and reactivated.
- The Centre should have powers to deploy its armed forces, even without the consent of states.
- The Centre should consult the states before making a law on a subject of the Concurrent List.
- The procedure of consulting the chief minister in the appointment of the state governor should be prescribed in the Constitution itself.
- The net proceeds of the corporation tax may be made permissibly shareable with the states.
- The governor cannot dismiss the council of ministers so long as it commands a majority in the assembly.
- The governor’s term of five years in a state should not be disturbed except for some extremely compelling reasons.
- No commission of enquiry should be set up against a state minister unless a demand is made by the Parliament.
- The surcharge on income tax should not be levied by the Centre except for a specific purpose and for a strictly limited period.
- The present division of functions between the Finance Commission and the Planning Commission is reasonable and should continue.
- Steps should be taken to uniformly implement the three language formula.
- No autonomy for radio and television but decentralisation in their operations.
- No change in the role of Rajya Sabha and Centre’s power to reorganise the states.
- The commissioner for linguistic minorities should be activated.
- The Empowered Committee of Finance Ministers of States proved to be a successful experiment in inter-state co-ordination on fiscal matters.
- New all-India services in sectors like health, education, engineering and judiciary should be created.
- Factors inhibiting the composition and functioning of the Second Chamber as a representative forum of states should be removed or modified.
- A balance of power between states inter se is desirable and this is possible by equality of representation in the Rajya Sabha.
- The scope of devolution of powers to local bodies to act as institutions of self-government should be constitutionally defined.
- All future Central legislations involving states’ involvement should provide for cost sharing as in the case of the RTE Act.
- The royalty rates on major minerals should be revised at least every three years.
- The current ceiling on profession tax should be completely done away with by a Constitutional amendment.
- The scope for raising more revenue from the taxes mentioned in article 268 should be examined afresh.
- To bring greater accountability, all fiscal legislations should provide for an annual assessment by an independent body.
- Considerations specified in the Terms of Reference (ToR) of the Finance Commission should be even handed.
- Steps should be taken for the setting up of an Inter-State Trade and Commerce Commission under Article 307 read with Entry 42 of List-I.