The cabinet on Thursday considered the recommendations of 13th Finance Commission and decided to place the report before parliament during the budget session.

The report lays down the roadmap for sharing of taxes between the centre and states for the period 2010-15.

The recommendations of the Commission are based on detailed assessment of the financial position of the central and state governments and wide consultations with stakeholders.

The cabinet also gave its nod to Air Services Agreement between India and Nepal.

The Cabinet Committee on Economic Affairs approved 27 percent OBC reservation in PGI, Chandigarh. This was announced by Home Minister P. Chidambaram after the cabinet meeting in New Delhi.

From now onwards the Foreign investment proposals involving total foreign equity inflow of more than Rs.1,200 crore would be placed before cabinet.

"The recommendation of Foreign Investment Promotion Board (FIPB) on proposals with total foreign equity inflow of and below Rs.1,200 crore will be considered by the finance minister for approval," Chidambaram told reporters.

The move will further liberalise norms and expedite foreign investment inflow into the country.

Earlier, foreign investment of up to Rs.600 crore were approved by the finance minister and anything more than that were put up to the CEA for approval.

The finance minister will be empowered to clear the rest of the approvals on recommendations of the Foreign Investment Promotion Board.