Punchhi Commission

Punchhi Commission was established in the year 2007 by the Government of India to address changes in the Indian polity and economy. The commission looked into changes since the previous Sarkaria Commission two decades earlier. it aimed to examine existing arrangements between the Union and States, social and economic developments, and specific focus areas related to Centre-state relations.

Punchhi Commission will be helpful for UPSC IAS Exam preparation. GS Paper-2 Indian Polity.

Table of Content

• What is Punchhi Commission?
• Purpose of Punchhi Commission
• Legislative Recommendations of Punchhi Commission
• Executive Recommendations of Punchhi Commission
• Other Recommendations of Punchhi Commission
• Conclusion
• Frequently Asked Questions

What is Punchhi Commission?

• The Government of India established the Second Commission on Centre-State Relations in April 2007.
• It is also known as MM Punchhi Commission or Madan Mohan Punchhi Commission because it was chaired by Madan Mohan Punchhi, former Chief Justice of India.
• It aimed to address changes in the Indian polity and economy since the previous Sarkaria Commission two decades earlier.

Punchhi Commission Report Submission and Conclusion:

• The MM Punchhi Commission submitted its report in April 2010.
• The report drew extensively from the Sarkaria Commission report, NCRWC report, and Second Administrative Reforms Commission report.
  • However, the Commission’s report differed from the Sarkaria Commission’s recommendations in several areas.
• The Commission put forth more than 310 recommendations concerning various important aspects of Centre-state relations.

Purpose of Punchhi Commission

Examination of Existing Arrangements:

• Reviewing the functioning of current arrangements between the Union and States as per the Constitution of India.
• Assessing the positive precedents, court pronouncements, and powers in various spheres, including legislative and administrative relations.
• Considering the role of governors, emergency provisions, financial relations, economic and social planning, Panchayati Raj institutions, and resource sharing.
• Recommending appropriate changes or measures, considering practical difficulties.

Social and Economic Developments:

• Examining the existing arrangements between the Union and States.
• Making recommendations for necessary changes and measures.
• Considering the social and economic developments of the past two decades.
• Respecting the framework of the Constitution.
• Addressing challenges in ensuring good governance, promoting welfare, strengthening unity and integrity, and availing economic growth opportunities.

Specific Focus Areas:

• Centre-State Role during Social Conflicts:
  • Examining the Centre’s role during communal or caste violence or any social conflict.
  • Assessing jurisdiction and responsibilities in such situations.
• Centre-State Role in Mega Projects:
  • Analyzing the Centre’s role in planning and implementing mega projects like inter-linking of rivers.
  • Assessing the significance of state support in these long-term projects.
• Devolution of Powers to Panchayati Raj Institutions:
  • Assessing the Centre’s responsibility in promoting effective devolution of powers and autonomy to Panchayati Raj Institutions and Local Bodies.
  • Setting a specific timeline for achieving this objective.
• Independent Planning and Budgeting at the District Level:
  • Examining the Centre’s role in promoting independent planning and budgeting at the district level.
• Linking Central Assistance with State Performance:
  • Assessing the Centre’s role in linking various forms of Central assistance with state performance.
• Positive Discrimination for Backward States:
  • Analyzing the Centre’s role in adopting approaches and policies based on positive discrimination in favour of backward states.
• Impact of Finance Commission Recommendations:
  • Studying the impact of recommendations made by the 8th to 12th Finance Commissions on fiscal relations between the Centre and States.
• Relevance of Separate Taxes:
  • Assessing the need and relevance of separate taxes on production and sales of goods and services after the introduction of the Value Added Tax regime.
• Freeing Inter-State Trade:
  • Evaluating the need to establish a unified and integrated domestic market through the liberation of inter-state trade.
• Central Law Enforcement Agency:
  • Assessing the need for a Central Law Enforcement Agency with the power to investigate crimes having inter-state and international ramifications.
• Suo Moto Deployment of Central Forces:
  • Evaluating the feasibility of supporting legislation under Article 355 to deploy Central forces in states when necessary.

Punchhi Commission Report

Legislative Recommendations of Punchhi Commission

Facilitating effective implementation of laws on Concurrent list subjects:

• Broad agreement is needed between Union and states before introducing legislation in Parliament.
• Promote better Centre-state relations through greater flexibility to states.
• Union should only occupy necessary subjects for uniform policy in the national interest.
• Interstate Council should have an auditing role in managing concurrent jurisdiction.

Amendments to legislative procedures:

• President’s decision on state bills should have a prescribed time limit.
• Streamline procedures for treaty-making and implementation through Parliamentary legislation.

Rajya Sabha reforms:

• Remove factors inhibiting the Second Chamber as a representative forum of states.
• Amend provisions to provide equal representation of states in Rajya Sabha.

Executive Recommendations of Punchhi Commission

Role and tenure of Governors:

• Governors’ selection should follow strict guidelines to ensure impartiality.
• Fixed tenure of five years for Governors, removal not at the Centre’s discretion.

Governors’ responsibilities:

• Governors should focus solely on Constitutional provisions, not statutory positions.
• Centre should exhaust all options before invoking Article 356 (failure of Constitutional machinery).

Chief Minister appointment and dismissal:

• Guidelines for Governor’s role in appointing Chief Minister in a hung assembly.
• Chief Minister should prove a majority on the floor of the House within a time limit.
• Governor’s right to sanction prosecution of state minister in cases of bias.

Other Recommendations of Punchhi Commission

Strengthening inter-state coordination:

• Amendments to make Inter-State Council credible and fair.
• Zonal Councils should meet regularly to promote coordination and policy harmonization.

Institutionalizing inter-state coordination:

• Establish sector-specific forums for coordination (energy, food, education, environment, health).
• Creation of new all-India services in sectors like health, education, engineering, and judiciary.

Local governance and fiscal matters:

• Define the devolution of powers to local bodies through constitutional amendments.
• Central legislation involving states’ involvement should share implementation costs.
• Regular revision of royalty rates on major minerals, to compensate for delay.

Fiscal management and accountability:

• Annual assessment of fiscal legislation by independent bodies.
• Effective involvement of states in the finalization of Finance Commission’s Terms of Reference (ToR).
• Convert Finance Commission division into a full-fledged department.
• Better coordination between Finance Commission and Planning Commission.
• Planning Commission should focus on coordination rather than micro-management.

Inter-State Trade and Commerce Commission:

• Establish a Constitutional body with advisory and executive roles.
• Commission’s decisions should be final and binding, with appeal option to the Supreme Court.

Conclusion

The MM Punchhi Commission submitted its report in 2010, drawing extensively from various reports including the Sarkaria Commission, NCRWC report, and Second Administrative Reforms Commission report. With over 310 recommendations, the Commission addressed crucial aspects of Centre-state relations. Its importance lies in providing guidelines for better governance, promoting unity, and ensuring effective coordination between the Union and States. The recommendations have the potential to strengthen inter-state coordination, fiscal management, and accountability, leading to a more harmonious and balanced relationship between the Centre and States.

Ref: Source-1

FAQs (Frequently Asked Questions)