An autonomous research institute under the Ministry of Finance


Union Budget 2024: Amid global headwinds, there is no room for irrational expectations


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The fiscal deficit target for FY25 in the midst of weaker nominal GDP growth and disinvestment shortfall will be below 6 percent, slightly around 5.2-5.5 percent. This fiscal glide path is crucial to reach the 4.5 percent fiscal deficit to GDP by 2025-26.
Against the backdrop ...

MPC Meeting: Amid too many risks, status quo in policy rates is welcome


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The combined fiscal-monetary risks and climate change related risks can trigger an irreversible threat to the global economy. Against this backdrop, the RBI Governor has judiciously conducted his policy rate manoeuvring, with majority votes for the decision of status quo in policy rates. This RBI decision is welcome, despite all ...

Sixteenth Finance Commission and ‘beyond the GDP’ paradigm


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The analytical framework of the 16th Finance Commission will be 'beyond GDP', by integrating human development variables. Will it also apply a 'gender lens' in the inter-governmental fiscal transfer framework within the terms of reference?
The 16th Finance Commission is expected to be constituted this month, and its terms ...

Economics Nobel & Women in Labour Force: Why policymakers need to consider Goldin's work


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The 2023 Nobel economics laureate has shown that the bulk of this earnings difference is now between men and women in the same occupation and that it largely arises with the birth of the first child.
The 2023 Sveriges Riksbank Prize in Economic Sciences in memory of Alfred Nobel ...

Debt Sustainability: G20 should seek interest rates lower than growth rate


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High interest rate affects public debt management when debt servicing becomes costlier. The pragmatic baseline for the G20 fiscal sustainability is to have a check on the cost of borrowing and rate of economic growth, opt for debt restructuring and go soft on numerical thresholds.
In a low-interest rate ...