Highlights of Thirteenth Finance Commission 2010-15 ( By Arun Joshi,9888933043)

States to get 32 per cent of Central taxes, compared to 30.5 per cent now

Up to 2.5 per cent of divisible pool may be transferred as grants to local bodies

Total transfers to states on the revenue account be capped at 39.5 per cent of the Centre’s gross tax revenue, compared to 37.5 per cent

Centre should target a revenue surplus by 2014-15

Combined debt of Centre and states should be capped at 68 per cent of GDP by March 2015; currently at 82 per cent

In the case of macroeconomic shocks, Centre to borrow and devolve to states instead of relaxing the state borrowing limits

The medium term fiscal plan should be made a statement of commitment

Single rate for goods, services proposed

To make, GST purely consumption based, taxes and cesses should be subsumed

Petrol, diesel, alcohol, tobacco may be charged to GST with additional levies by the Centre and states

Only Public services, unprocessed food items, health, education and transactions between employer and employee be exempted