An autonomous research institute under the Ministry of Finance

 

Ongoing projects

Analysis of Tax Disputes in India (continuation)

  • Start date March, 2020
  • Sponsor Bill and Melinda Gates Foundation (BMGF)
  • Project leader Suranjali Tandon
  • Consultants/Other authors Adithya Reddy
  • Focus

    The project involves a detailed review of the international tax dispute resolution mechanisms in India and an international comparison of best practices to find ways to improve the dispute resolution system in India.


Does Monetary Policy in India Anchor Inflation Expectation?

  • Start date Sept., 2019
  • Completion date Dec., 2021
  • Sponsor Professor P. R. Brahmananda Research Grant, Institute of Social and Economic Change, Bengaluru, 2018-19
  • Project leader Rudrani Bhattacharya
  • Focus

    India entered the inflation targeting monetary policy regime in 2015. Under this rule-based monetary policy regime, change in the policy rate transmits to economic activities and the current inflation rate by altering the inflation expectation of the rational economic agents. This study empirically investigates whether monetary policy can anchor inflation expectation of economic agents in India. In our analysis, the survey based measure of households' inflation expectation published by the Reserve Bank of India captures the inflation expectation of private agents. Using a co-integrated Vector Auto Regression (VAR) model, we find moderate but significant monetary policy transmission in India via the interest rate channel. However, inflation expectation seems to be unanchored by the conduct of monetary policy in the country.


Measuring the Impact of Foreign Monetary Policy Shock on Exchange Rate Volatility in India

  • Start date April, 2020
  • Completion date Dec., 2021
  • Sponsor NIPFP
  • Project leader Rudrani Bhattacharya
  • Consultants/Other authors Shubhankar Mayank (summer intern, April–May, 2020)
  • Focus

    Stability of the exchange rate is very crucial for every country, irrespective of its monetary policy regime. This article presents an overview of the major events (of both international and domestic importance) that affected the rupee-dollar exchange rate after  India's independence, and attempts to determine the impact of foreign monetary policy shocks on the rupee-dollar exchange rate volatility through using GARCH modelling, multivariate regression and boosted regression trees.


Understand and Evaluate the Recommendations made by the Fifteenth Finance Commission

  • Start date Feb., 2021
  • Completion date June, 2021
  • Sponsor The World Bank
  • Project leader Pinaki Chakraborty
  • Other faculty Manish Gupta, Amandeep Kaur
  • Focus

    Finance Commission transfers constitute more than two-thirds of the total transfers to states. There is a need to understand the implications of the recommendations of the Fifteenth Finance Commission in terms of progressivity, fiscal stability and fiscal space at the sub-national level. Fiscal stability between the Centre and the States, sectoral grants focused on outcome, and strengthening finances and service delivery at the local level are some of the key highlights of the Fifteenth Finance Commission’s recommendations. The paper discusses the implications of the recommendations of the Commission on the fiscal space of both the Central and state governments. It also examines the issue of horizontal equalisation addressed by the Finance Commission and will review the public finance management and fiscal transparency issues at the state and Central level recommended by the Fifteenth Finance Commission.


Updating of State Finance Data of States Budgets- 2022-23: Compiling information and making of macro tables for the use of faculty in their academic activities

  • Start date April, 2021
  • Completion date June, 2022
  • Sponsor NIPFP
  • Project leader H. K. Amar Nath
  • Consultants/Other authors Rohit Dutta
  • Focus

    Providing compiled information on state finances to faculty in soft copy immediately after the presentation of Budgets, till 2022-23.