- The share of states in the net proceeds of the shareable Central taxes should be 32%.This is 1.5% higher than the recommendation of 12th Finance Commission.
- Revenue deficit to be progressively reduced and eliminated, followed by revenue surplus by 2013-14.
- Fiscal deficit to be reduced to 3% of the GDP by 2014-15.
- A target of 68% of GDP for the combined debt of centre and states.
- The Medium Term Fiscal Plan(MTFP)should be reformed and made the statement of commitment rather than a statement of intent.
- FRBM Act need to be amended to mention the nature of shocks which shall require targets relaxation.
- Both centre and states should conclude 'Grand Bargain' to implement the model Goods and Services Act(GST).To incentivise the states, the commission recommended a sanction of the grant of Rs 50000 crore.
- Initiatives to reduce the number of Central Sponsored Schemes(CSS)and to restore the predominance of formula based plan grants.
- States need to address the problem of losses in the power sector in time bound manner.