An autonomous research institute under the Ministry of Finance

 

Ongoing projects

Public Finance for Children: State-level Analysis of Gujarat, Odisha, Karnataka, Telangana

  • Start date Aug., 2019
  • Completion date Dec., 2021
  • Sponsor Bill and Melinda Gates Foundation under the Innovation in Public Finance project
  • Project leader Lekha Chakraborty and Amandeep Kaur (with Anindita Ghosh (till December 2020) and Jannet Farida Jacob)
  • Focus
    Around 60 per cent of school-age children are now in the category termed as ‘effectively out-of-school’. They are deprived of education due to the ‘digital divide’ (lack of access to internet) — a situation that has emerged because of the pandemic. 
    In this study, we explore child budgeting in the specific context of India’s Central and sub-national government responses to the pandemic, with a focus on the states of Karnataka, Gujarat, Odisha and Telangana. The inferences from our study on child budgeting of these specific states will help the Ministry of Finance to strengthen child budgeting as a public financial management tool for accountability, at the Central and state government levels.
     

Environmental/Ecological Fiscal Transfers

  • Start date Aug., 2019
  • Completion date Aug., 2021
  • Sponsor Self-initiated
  • Project leader Lekha Chakraborty, Amandeep Kaur, Divy Rangan
  • Focus

    Against the backdrop of the Covid-19 pandemic, the paper explores the empirical evidence for flypaper effects in the ecological fiscal space in India. Using the panel data models, we analyse whether the impact of intergovernmental fiscal transfers or state’s own revenue determines the expenditure commitments on ecology at the state level. The econometric analysis shows that the aggregate intergovernmental fiscal transfers rather than state’s own income determines the ecological expenditure at sub-national government levels. The evidence for the efficacy of flypaper effects either stem from bureaucratic fiscal behaviour or the fiscal illusion of the economic agents about the exogeneity of ecological fiscal space. The results hold, when the models are controlled for ecological outcomes and demographic variables. However, at the disaggregated levels of intergovernmental fiscal transfers - grants and tax devolution - the evidence for flypaper effects is mixed. This result has policy implications and provides empirical evidence to Ministry to Finance about the efficacy of intergovernmental transfers on ecological expenditure at the state government level. 


Fiscal Policy for the Unpaid Care Economy

  • Start date Feb., 2019
  • Completion date Dec., 2021
  • Sponsor Self-initiative (research collaboration with American University, Washington DC)
  • Project leader Lekha Chakraborty
  • Focus

    The statistical invisibility of the care economy is a matter of concern. The time use survey published by the National Statistical Office in 2020 for all states is an innovative dataset to understand the economic activities under the Systems of National Accounts, 1993, which extended the production boundary to incorporate the household and societal levels of unpaid economic activities. These inferences have policy implications for gender budgeting. The paper will provide analytical backup (on the care economy) to the ongoing gender budgeting initiatives by the Ministry of Finance. 


Sectoral Spending Effectiveness of Gender Budgeting on Gender Equality and Fiscal Space in Education and Health: A study of the Asia Pacific Region

  • Start date Sept., 2019
  • Completion date Dec., 2021
  • Sponsor Self-initiated project (earlier version was presented in the American Economic Association meetings in Atlanta)
  • Project leader Lekha Chakraborty
  • Focus

    This paper empirically analyses the impact of fiscal policy practices, with particular reference to the processes and analytical frameworks of gender budgeting, on ‘equally distributed equivalent’ variables of gender in the health and education sectors within the political economy framework in the countries of the Asia-Pacific region. NIPFP has been a pioneer in gender budgeting and worked in close association with Ministry of Finance to institutionalise gender budgeting in 2004. Given that the NIPFP methodology of gender budgeting at the national and sub-national levels has remained unchanged, we can use time series data to analyse the impact of gender budgeting on gender equality outcomes and the fiscal space. The inferences from this study will provide an empirical review of gender budgeting across countries in the Asia Pacific with clear policy inputs for the Ministry of Finance. 


Covid-19 and Analysing Economic Stimulus Packages in Asia Pacific

  • Start date Aug., 2020
  • Completion date May, 2021
  • Sponsor Self-initiated
  • Project leader Lekha Chakraborty (with Amandeep Kaur, Divy Rangan and Jannet Farida Jacob)
  • Focus
    The paper analyses the fiscal and monetary policy components of the economic stimulus packages, incorporating gender and human rights assessments. The four specific components are:
    food security, 
    social protection, 
    social infrastructure and service provisioning and 
    economic activity and employment. 
    The empirical evidence from the Asia Pacific countries can provide insights to the Ministry of Finance in designing economic stimulus packages to deal with the second wave of the pandemic. The study is being published as an NIPFP monograph in May 2021. The core chapter is also published as an AusTax Policy blog of the Tax and Transfer Policy Institute (TTPI) at the Crawford School of the Australian National University in May 2021.