An autonomous research institute under the Ministry of Finance


What distinguishes welfare measures from freebies?


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[ In conversation with Jayant Sriram of The Hindu. ]

Adequate fiscal space and socioeconomic context should be the basis for welfare policies

There is an overwhelming consensus that a slew of welfare policies initiated by the Aam Aadmi Party (AAP) government in its previous term secured the party’s victory in the ...

Gender budgeting takes a giant leap in India with 15th FC's report


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“15th Finance Commission’s decision to give 12.5 per cent weightage to “demographic performance” is laudable.


India has made history as the first country ever to integrate gender in the intergovernmental fiscal transfers (IGFT) formula. The 15th Finance Commission has taken this bold decision — during its transition to ...

Sitharaman Misses the Chance to Exploit the Full Potential of a Higher Fiscal Deficit


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IT remains a genuine confusion as to whether invoking “escape clause” to deviate from the fiscal consolidation path is in response to the unanticipated outcome of structural policy announcements or whether it is for increasing capital spending.
Economists often push the idea that strict adherence to fiscal rules is ...

Why India is attracting FDI


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(Coauthored with Lekha Chakraborty)
India gained by 16% in terms of FDI inflows, from $42 billion to $49 billion, holding its position amongst top 10 FDI inflow-host countries. This is when the global FDI remained almost flat in 2019, at $1.39 trillion
In the World Economic Outlook ...

Budget again reveals structural fiscal constraint


Strap: It recognises that the medium-term fiscal arithmetic does not afford space for expansionary fiscal policy
In my column on the FY20 Budget (A silent fiscal crisis, July 5, 2019), I had warned that the government faced a structural fiscal constraint that was concealed by using incorrectly optimistic numbers ...