An autonomous research institute under the Ministry of Finance

 

Past projects

NIPFP-Comptroller and Auditor General (C&AG) Training and Assistance Programme

  • Start date July, 2014
  • Completion date Dec., 2016
  • Sponsor Comptroller and Auditor General (C &AG)
  • Project leader Rathin Roy
  • Other faculty Pratap Jena, Manish Gupta, Sukanya Bose
  • Focus

    The programme aims to improve the knowledge and capacity building in Public Debt Management (PDM) / Fiscal Responsibility and Budget Management Act, 2003 (FRBM) and its implementation. This is the second year of the project. Work involves conducting requested training programs, working with the CAG officials on the report, providing data and information, providing comments and suggestions on draft reports.


Study on How do disclosures affect financial choices? The Case of Life Insurance of India

  • Start date Jan., 2016
  • Completion date Oct., 2016
  • Sponsor International Growth Centre, The London School of Economic and Political Science
  • Project leader Ajay Shah
  • Focus

    To understand household motivation for the purchase of insurance products and evaluate the effectiveness of different disclosures formats for insurance products. 


Medium Term Fiscal Plan (MTFP) under FRBM Act of Sikkim - 2016-17

  • Start date Jan., 2015
  • Completion date March, 2016
  • Sponsor Government of Sikkim
  • Project leader Pratap Ranjan Jena
  • Focus
    The report presents the MTFP for the Government of Sikkim for the year 2016-17. The MTFP 2016-17 contains the fiscal policy objectives and projected fiscal targets in the ensuing budget year and two outward years. The report was prepared based on existing macro-fiscal environment and taking into consideration the requirements of the newly-enacted FRBM Act in Sikkim. The report projects the fiscal variables for three years including the budget year aligning with the stipulation of the FRBM Act.

Estimation of Health Care Expenditure by Rural Local Bodies

  • Start date May, 2015
  • Completion date March, 2016
  • Sponsor National Health Systems Resource Centre (NHSRC), Ministry of Health and Family Welfare
  • Project leader N.R. Bhanumurthy
  • Other faculty H.K. Amar Nath
  • Focus

    The study will analyse the extent and sources of funds for rural local bodies (RLBs), and indicate the level and structure of expenditure incurred out of these funds. Expenditure analysis will primarily focus on health and health related activities within the broad structure of expenditure by RLBs.


NIPFP-EMC Policy Research Programme

  • Start date April, 2015
  • Completion date March, 2016
  • Sponsor Expenditure Management Commission, Ministry of Finance, Government of India
  • Project leader N.R. Bhanumurthy
  • Other faculty Rathin Roy
  • Consultants/Other authors Suyash Rai, Sahana Roy Chowdhury
  • Focus

    The study wil undertake a research programme involving:

    (i) series of studies

    (ii) research support for Expenditure Management Commisssion (EMC) on ongoing basis for one year. This support will include short-term research inputs that the EMC might require during the course of the years; and

    (iii) drafting and editorial support for EMC reports.


Classifying Public Expenditure for India's National Health Accounts

  • Start date April, 2015
  • Completion date Jan., 2016
  • Sponsor National Health Systems Resource Centre (NHSRC), Ministry of Health and Family Welfare
  • Project leader Mita Choudhury
  • Consultants/Other authors Jay Dev Dubey
  • Focus

    The study will map detailed budgetary expenditure on health in India using the International System of Health Accounts 2011 (SHA 2011) framework. The mapping will cover expenditure reported under the budgetary head of Health and Family Welfare in the Union Budget and budgets of three selected States.

     

    Estimation of Public Spending for National Health Accounts (NHA) of India: An Illustration of Use of Data on Withdrawals by Drawing and Disbursing Officers (DDOs)
     
    The study illustrated the advantages of combining information on withdrawals by DDOs with budgetary data for improving estimates of public spending for NHA in India. Specifically, it highlighted the benefits of using DDO-level information for two cases (i) for mapping public spending to different provider and functional classes of the international SHA 2011, and (ii) for mapping public spending to different types of health providers in India.

     


Study on Bihar State finances

  • Start date April, 2014
  • Completion date Jan., 2016
  • Sponsor 5th State Finance Commission, Government of Bihar
  • Project leader Tapas K. Sen
  • Other faculty R. Kavita Rao, Sacchidananda Mukherjee
  • Focus

    The Study will include a detailed analysis of (a) the State's taxable capacity and effort (b) public expenditure issues including efficiency, prioritization and sectoral allocation (c) Centre-State issues (d) fiscal imbalances and adjustment (e) fiscal liabilities and sustainability

     

    Study on Bihar State Finance - Policy Options for Tax Rationalization and Mobilization of Revenue

    The study has two components: (a) tax (item-wise) analysis and suggestions for rationalization of the tax base and rates, and specific action for additional resource mobilization and (b) impact of proposed GST on state finances.

     


Research on Business Cycle

  • Start date July, 2010
  • Completion date Jan., 2016
  • Sponsor India Value Associates
  • Project leader Ajay Shah, Ila Patnaik
  • Other faculty Rudrani Bhattacharya
  • Focus

    To conduct new research on business cycle phenomena in India.


Understanding Governance and Public Finance Bottlenecks in Achieving Development Goals in Madhya Pradesh

  • Start date Aug., 2015
  • Completion date Jan., 2016
  • Sponsor UNICEF, Bhopal
  • Project leader N.R. Bhanumurthy
  • Other faculty H.K. Amarnath
  • Focus

    This is the second phase of our work with UNICEF, Bhopal.  In the first phase we have completed the MDG Report for the State.  In this phase, the project is expected to address the issue of divergences in development achievements across the districts.


Medium Term Fiscal Plan under FRBM Act of Sikkim - 2015-16

  • Completion date Dec., 2015
  • Sponsor Government of Sikkim
  • Project leader Pratap Ranjan Jena
  • Focus

    The report presents the Medium Term Fiscal Plan (MTFP) for the Government of Sikkim for the year 2015-16. The report projects the fiscal variables for three years including the budget uear aligning with the stipulation of the FRBM Act.


Have Newly Created Indian States Promoted Inclusive Development? A Comparison of Jharkhand and Chhattisgarh

  • Start date July, 2014
  • Completion date Dec., 2015
  • Sponsor University of East Anglia, U.K.
  • Project leader Rathin Roy
  • Other faculty Mita Choudhury
  • Focus

    This study provides a comparative picture of the fiscal trajectories of Chhattisgarh and Jharkhand. The comparison suggests that the difference in the performance of the two States can be attributed partly to differences between the States of their origin, and partly to fiscal management after the creation of these States. The evidence, albeit limited, also suggests a poorer tax administration and expenditure management in Jharkhand than in Chhattisgarh.

    The study undertaken was aimed to address the following broad question: Has State creation produced a distinctive fiscal agency, especially as expressed through changes to the structure of taxation and the pattern of public spending?


Fiscal Policy Practices on Mining: Effective States for Inclusive Development

  • Completion date Dec., 2015
  • Sponsor ESID, University of East Anglia, UK
  • Project leader Rathin Roy
  • Other faculty Lekha Chakraborty
  • Focus

    Against the backdrop of the recent MMDR Bill 2015, this project examines the political economy of State-business relations in mining sector. Using the State Reorganisation Acts and Fiscal Legislations, the study analyses whether the formation of new States - Jharkhand and Chhattisgarh -  has created any distinct "fiscal agency" in the mining sector. 


Issues before the Tamil Nadu Fifth State Finance Commission

  • Completion date Dec., 2015
  • Sponsor Government of Tamil Nadu
  • Project leader Pinaki Chakraborty
  • Other faculty Manish Gupta
  • Focus

    In order to examine the processes and progress pf fiscal decentralisation, this project has undertaken a critical review of all State Finance Commissions of amjor states, at the request of Tamil Nadu Fifth SFC.


Foreign Borrowing by Indian Firms: Implications for Growth and Macroeconomic Stability

  • Completion date Dec., 2015
  • Sponsor International Growth Centre, London School of Economics and Political Science, UK
  • Project leader Ila Patnaik
  • Other faculty Ajay Shah
  • Consultants/Other authors Apoorva Gupta, Nirvikar Singh
  • Focus

    The project will contribute to the academic literature on firm financing and borrowing decisions, and to the understanding of industrial dynamics in India. This project will analyze the pattern of external borrowing by Indian firms, something that has not been done at all as yet. It will identify possible drivers of such borrowing. Most importantly, it will analyze the impacts of foreign borrowing on the performance of firms that do so, and compare them to the performance of firms that do not borrow. Finally, it will assess the macroeconomic risks that may be associated with external borrowing by Indian firms, and the implicit risk-reward trade-off of growth vs. macroeconomic stability.


Developing Various Models of Business Plan for Continuous Enrolment, Update and other Services to be Offered by UIDAI

  • Start date Sept., 2014
  • Completion date Aug., 2015
  • Sponsor Unique Identification Authority of India (UIDAI)
  • Project leader Ajay Shah
  • Consultants/Other authors Suyash Rai, Sanhita Sapatnekar
  • Focus

    The objective of this project is to advise UIDAI on the different business models for enrolment, updation and other Aadhaar-related services. The proposed business models would include variations on incentive design for service providers, pricing strategy for services, and systems of accountability.


The Review of Compliance of the Government of Odisha to the FRBM Act - 2013-14

  • Start date Jan., 2015
  • Completion date July, 2015
  • Sponsor Government of Odisha
  • Project leader Tapas K. Sen
  • Other faculty Pratap Ranjan Jena
  • Focus

    The review report will assess the achievements of the State Government while implementing the provisions of FRBM Act for the year 2013-14. The report will evaluate the fiscal management in recent years and medium term fiscal policy (MTFP) of the State Government. The budget projections and outturns for the fiscal year 2013-14 will be assessed based on fiscal management principles enunciated in amended FRBM Act of the Act. The report is expected to be placed in the State legislature during this year’s budget session.


Study on Development of an Analytical Model for Widening of the Taxpayers’ Base

  • Start date March, 2014
  • Completion date July, 2015
  • Sponsor Central Board of Direct Taxes
  • Project leader Kavita Rao
  • Other faculty Sacchidananda Mukherjee, Sudhanshu Kumar
  • Consultants/Other authors D.P. Sengupta, Suranjali Tandon and Deborshi Brahmachari
  • Focus

    To analyse the evolution of number of taxpayers paying tax under personal income tax in India and to construct an analytical model to predict the number of taxpayers that should be there in the system.


Preparing MDG Report for the State of Madhya Pradesh

  • Start date Aug., 2014
  • Completion date July, 2015
  • Sponsor UNICEF
  • Project leader N.R. Bhanumurthy
  • Other faculty H.K. Amar Nath, Sukanya Bose
  • Focus

    The study intends to provide a consolidated overview of Madhya Pradesh's achievements against MDG indicators, at State and District-level. It will also provide an analytical framework for better understanding Madhya Pradesh's developmental results (against the MDG framework) using equity lens to comprehend depriviations and vulnerabilities of marginalised and excluded groups.


The Review of Compliance of the Government of Sikkim to the FRBM Act - 2012-13

  • Completion date July, 2015
  • Sponsor Government of Sikkim
  • Project leader Pratap Ranjan Jena
  • Other faculty Satadru Sikdar
  • Focus

    The report assessed the fiscal stance of the state government while implementing the provisions of FRBM Act for the year 2012-13 as per the amendments to the Act in accordance with the recommendations of the 13th Finance Commission.


Financing Healthcare Expenditure in India

  • Completion date Dec., 2014
  • Sponsor Ministry of Health and Family Welfare
  • Project leader Mita Choudhury
  • Other faculty Bharatee Bhusana Dash
  • Focus

    This is an umbrella project to study different aspects of health care expenditure in India since the initiation of the National Rural Health Mission (NRHM). So far, four reports have been submitted under this project to the Ministry of Health and Family Welfare. These include two one-time studies: (1) Health Expenditure by the Central Government in India: A State-level Distribution, and (2) Distribution of Public Spending across Health Facilities: A Study of Four States in India. As part of the project, two annual studies are also required to be submitted to the Ministry every year. These include an annual report on estimate of public expenditure on health in India, and a report on selected aspects of NRHM expenditure in two States of India. Annual reports submitted so far include 1) An Estimate of Public Expenditure on Health in India: 2004-05 to 2010-11, and (2) Selected Aspects of NRHM Expenditure at the State-level: A Focus on Rajasthan and Karnataka.


Tax Policy and Enterprise Development in South Asia

  • Start date April, 2014
  • Completion date Sept., 2014
  • Sponsor Governance Institute Network International, Islamabad
  • Project leader R. Kavita Rao
  • Consultants/Other authors Amarjyoti Mahanta and Kausik Bhadra
  • Focus

    This study examines the impact of tax on enterprise development on three specific themes: (a) The Impact of Tax The Impact of Tax Exemptions and Concessions on Enterprise Development; (b) The Impact of the Value-Added-Tax (VAT) on Enterprise Development; and (c) The Impact of Property Tax on Enterprise Development.


Intergovernmental Finance in Five Emerging Market Economies

  • Completion date Sept., 2014
  • Sponsor Fourteenth Finance Commission
  • Project leader Tapas K. Sen
  • Other faculty Sudhanshu Kumar, Manish Gupta, H.K. Amar Nath, Bharatee Bhusana Dash
  • Focus

    China, Russia, Brazil, South Africa and Indonesia.


Macro-Econometric Modelling

  • Start date March, 2014
  • Completion date July, 2014
  • Sponsor Fourteenth Finance Commission
  • Project leader N.R. Bhanumurthy
  • Other faculty Sukanya Bose
  • Consultants/Other authors Abhishek Kumar, Parma Devi Adhikari
  • Focus

    The study will prepare a macro-fiscal modelling framework for forecasting and policy simulations keeping in view the issues that need to be addressed by the Finance Commission in the light of the Commission's TOR.


Strengthening Research and Capacity Development in the Department

  • Start date Oct., 2013
  • Completion date April, 2014
  • Sponsor Department of Economic Affairs (DEA), Ministry of Finance
  • Project leader Rathin Roy
  • Other faculty Kavita Rao, Manish Gupta, Sacchidananda Mukherjee
  • Consultants/Other authors Anil Bisen, Brookings, India; Ramprasad Sengupta, NIPFP/IDF; Susan Thomas, IGIDR; Subir Gokarn, Brookings, India; Vandita Sahay, NIPFP; S.K. Mohanty, RIS, Manmohan Agarwal, NIPFP, Honey Karun, NIPFP
  • Focus

    The project will study issues that evolve in multilateral fora such as G20, BRICS and other multilateral fora and develop a think tank to help the Government of India to understand the various dimensions of the issues and prepare a policy perspective on these issues

    The following project papers have been completed under G-20 Project:

    1.         Financing for Infrastructure Investment in G-20 Countries, Ramprasad Sengupta, Sacchidananda Mukherjee and Manish Gupta (NIPFP).

    2.         Action Plan on Base Erosion and Profit Shifting: An Indian Perspective, R. Kavita Rao, D.P. Sengupta, Suranjali Tandon and Deborshi Brahmachari (NIPFP).

    3.         International Coordination in Addressing Spillovers: Problems and Solution Strategies, Ila Patnaik (NIPFP).

    4.         Issues of Food Security under WTO: Implications for India, Manmohan Agarwal (NIPFP).

    5.         Global Value Chain Implications and Opportunities for India, Manmohan Agarwal (NIPFP).

    6.         India’s Policy Options to join the TPP in the Context of its Membership in the RCEP, S.K. Mohanty (RIS).

    7.         Deepening Economic Engagement in South Asia: exploring possibility for an expanding partnership, S.K. Mohanty (RIS).


Medium Term Fiscal Plan under FRBM Act of Sikkim - 2013-14

  • Completion date April, 2014
  • Sponsor Government of Sikkim
  • Project leader Pratap Ranjan Jena
  • Focus

    The report was prepared on the basis of the newly enacted FRBM Act in Sikkim. The report was placed in the State Legislature along with the budget for the year 2013-14.


The Review of Compliance of the Government of Odisha to the FRBM Act - 2012-13

  • Completion date April, 2014
  • Sponsor Government of Odisha
  • Project leader Tapas Kumar Sen
  • Other faculty Pratap Ranjan Jena
  • Focus

    The review report assessed the achievements of the State Government while implementing the provisions of FRBM Act for the year 2012-13, as per the amendments to the Act and in accordance with the recommendations of the 13th Finance Commission.


Policy Analysis in the Process of Deepening Capital Account Openness

  • Completion date March, 2014
  • Sponsor British High Commission
  • Project leader Ila Patnaik
  • Other faculty Rudrani Bhattacharya
  • Consultants/Other authors Neena Jacob, Radhika Pandey, Shekhar Hari Kumar, Shubho Roy, Sumathi Chandrashekaran, Suyash Rai
  • Focus

    The project focuses on building consensus on reforms of the capital accounts for policy making in an open economy for Government of India. Emerging economies differ from developed countries in terms of consumption pattern, presence of large and segmented informal sector, heterogeneous production technologies, under developed stage of the domestic financial system and at the same time, increasing level of financial market integration. To assess the impact of policy regime shifts on such an economy, modelling these features explicitly in a general equilibrium framework and analysing the short and medium term dynamics of the economy driven by these features are necessary.


Forest Disability Index for Hill States in India

  • Completion date March, 2014
  • Sponsor Planning Commission
  • Project leader Rita Pandey
  • Focus

    the need to protect and conserve forests, wildlife and other bio diversity-- besides restricting the land use choices and thus causing developmental disadvantages --adversely affects the unit cost of providing public services. In the literature these are referred to as "cost disabilities" which arise due to factors exogenous to State control such as difficult terrain, extreme and variable climatic conditions, large areas under forest, cost escalation in terms of time and institutional costs due to legal requirements and federal restrictions, cost mark-ups due to technological and material requirements for meeting specific rules and regulations. (e.g. maintaining wildlife corridors) It is argued that States need to be compensated through additional allocation by incorporating these in inter-governmental grants. This has been done in a number of countries.


NIPFP-DEA Research Programme

  • Completion date March, 2014
  • Sponsor Ministry of Finance
  • Project leader Ajay Shah
  • Other faculty Ila Patnaik
  • Consultants/Other authors Aakriti Mathur, Akhil Dua, Anirudh Burman, Apoorva Gupta, Atulkumar Singh, Jaskaran Anand, Navika Harshe, Neena Jacob, Pratik Datta, Radhika Pandey, Shekhar Hari Kumar, Shubho Roy, Sumathi Chandrashekaran, Suranjana Soumen, Vikram Bahure, Arjun Rajagopal
  • Focus

    Project website: http://macrofinance.nipfp.org.in/index.html

    This is the third MOU signed on 7th March 2012 between the NIPFP and the Department of Economic Affairs (DEA), Ministry of Finance, Government of India to undertake the NIPFP-DEA Research Program. The research program aims to provide research input to approach several new challenges that face DEA and the ministry of Finance. The reforms framework as established under several expert committees and as conceived by the Ministry consists of several important critical pieces, the Financial Stability and Development Council ("FSDC") being one of them. Two pillars of financial stability and development not only requires an understanding the Indian macro-economy and its inter-linkages with the rest of the world, but also an analysis and policy reform for the domestic. The research program will address larger questions of fiscal, financial and monetary policy in an open-economy setting, but also provide what is perceived as the indispensable - a research oriented policy support framework for topical issues that are of concern to the Ministry.


Revenue Potential of Himachal Pradesh: An Assessment and Suggestions for Reform

  • Completion date Dec., 2013
  • Sponsor Government of Himachal Pradesh
  • Project leader R. Kavita Rao
  • Other faculty Sacchidananda Mukherjee
  • Consultants/Other authors D.P. Sengupta
  • Focus

    The study has addressed the issues related to the trends in revenue receipts -- major taxes and non-tax revenues of Himachal Pradesh, for identifying areas of relatively weak performance in comparison with some similar States and suggests measures for improving revenue performance.


Study on Pricing the Authentication and eKYC Services Offered by UIDAI

  • Completion date Aug., 2013
  • Sponsor Unique Identification Authority of India, Planning Commission, Government of India
  • Project leader Ajay Shah
  • Consultants/Other authors Shubho Roy, Suyash Rai
  • Focus

    The Unique Identification Authority of India (UIDAI) has approached NIPFP to conduct a study to recommend a strategy for recovering the costs of Aadhaar-enabled services. UIDAI provides Aadhaar-enabled e-KYC and authentication services. The authentication services are based on biometric information (fingerprint and iris scan) and one time password (OTP). There are costs of providing these services, including the costs of establishing the infrastructure and the recurring costs of providing services. NIPFP is studying this issue based on theory and evidence from markets for similar services in various sectors.


A Vision Document for the State of Meghalaya 2030

  • Completion date May, 2013
  • Sponsor Government of Meghalaya
  • Project leader M. Govinda Rao
  • Other faculty Anuradha Bhasin, Alokesh Barua, Mukesh Anand, Rita Pandey
  • Consultants/Other authors R. Srinivasan
  • Focus

    This report was prepared at the behest of the Government of Meghalaya (GoMe). Consequent upon the preparation of the North-eastern Region (NER) Vision 2030, individual states in the region have also embarked upon devising a strategy to achieve this vision supplemented by their own respective initiatives.


Competitiveness of Zinc-Lead Mining in India: Role of Royalty Regime

  • Completion date Jan., 2013
  • Sponsor VEDANTA, STERLITE (INDUSTRIES) LTD
  • Project leader Lekha Chakrabroty
  • Focus

    The impact of fiscal policy at the firm level is a rare area of research. This study examined the significance of fiscal policy –especially the royalty regime – in determining the competitiveness of the mining sector. The study is confined to the mining regime of non-ferrous non-atomic minerals, focusing on zinc and lead (Zn-Pb) mine firms. It is often emphasized that the only crucial factor which affect the competitiveness of the firm are the quality of mineral endowments and the firm level performance variables. The firm level variables include the cost of production and the financing modes of the firm, among many other factors. However, in recent years this conservative view has come increasingly under confrontation by the executives in the extractive industries and the economists, emphasizing the importance of the role of government policies – taxation regime, royalty regime and regulations—in enhancing and undermining the competitiveness. Against the backdrop of the Planning Commissions’ High-level Committee Report on National Mineral Policy (referred as Hoda Committee), MMDR 2011 and the 2011 Study Group on Royalty by Government of India, this study analyzed the mining royalty mechanism of Zn-Pb sector. The study incorporates the plausible conceptual and methodological revisions required for ad valorem rates of Zn-Pb linked to London Metal Prices and also examined the alternative mining royalty ad valorem regimes, including Net Smelter Returns (NSR) royalty.


Study on Unaccounted Income/Wealth both Inside and Outside the Country

  • Completion date Dec., 2012
  • Sponsor Central Board of Direct Taxes, Ministry of Finance
  • Project leader R. Kavita Rao
  • Other faculty Sacchidananda Mukherjee, Sudhanshu Kumar
  • Consultants/Other authors S.S. Khan, Sudatta Banerjee, Suranjali Tandon, Deborshi Brahmachari, Shreyas Titunagari, Krishna Dev
  • Focus

    The study examined the extent, methods and consequences of tax evasion. It also identified the policy measures required to curb tax evasion.


Diesel Pricing in India: Entangled in Policy Maze

  • Completion date Nov., 2012
  • Sponsor Global Subsidies Initiative (GSI) of International Institute of Sustainable Development
  • Project leader Mukesh Kumar Anand
  • Focus

    The report identified the important economic activities that use diesel and discussed the contribution of those sectors in GDP. Other important petroleum products and, their limited substitution possibility in the extant technological setting were highlighted. The modal-mix for transportation in India were also discussed. The relevant policy agenda for diesel in the vision statement for hydrocarbon sector was presented along with a summary on evolution of petroleum products pricing regimes. The importance of petroleum taxes for public finance at the federal and provincial levels was discussed in the context of wider reforms in the administration of taxes. Impact of changes in diesel and / or petroleum prices, including taxes and subsidies, was explored along a few dimensions. Cost of diesel (and / or petroleum products) as a proportion of total cost of production was presented for certain users / sectors, and some suggestions on reform imperatives were offered.

     


Estimation of Revenue Neutral Rate at the State Level

  • Completion date Oct., 2012
  • Sponsor Empowered Committee of State Finance Ministers
  • Project leader R. Kavita Rao
  • Other faculty Pinaki Chakraborty
  • Focus

    The study estimated the revenue neutral rate of GST at the state-level, based on the latest information available on revenue and service tax from state-level VAT.


Study on Fiscal and Monetary Policy aspects under Framework for Energy Efficient Economic Development Mechanism of National Mission for Enhanced Energy

  • Completion date Oct., 2012
  • Sponsor Bureau of Energy Efficiency
  • Project leader Manish Gupta
  • Focus

    One of the components of National Mission for Enhanced Energy Efficiency is the Framework for Energy Efficient Economic Development (FEED) which seeks to develop fiscal instruments (including innovative fiscal instruments and policy measures) to promote energy efficiency across the country. Under the FEED framework, the study examined the existing fiscal and monetary policy framework for facilitating the objective of enhancing energy efficiency in the country and suggest appropriate measures.)

     


Assessment of the Riskiness of the Airport Sector and estimating fair rate of Return on Equity (RoE)

  • Completion date April, 2012
  • Sponsor Airports Economic Regulatory Authority of India
  • Project leader Ajay Shah
  • Consultants/Other authors Suyash Rai, Apoorva Gupta
  • Focus

    The scope of the project include the equity evaluation for all the airports (4 major private airports - Delhi International Airport Pvt. Ltd., New Delhi; Mumbai International Airport Pvt. Ltd., Mumbai; Bangalore International Airport Ltd., Bengaluru; GMR Hyderabad International Airport Ltd., Hyderabad;) keeping in view the risk profile of the projects/airports; recalculation of the beta values for the foreign airports being used as benchmark for beta values, review of the approach regarding use of book value of weighted average cost of capital, evaluation of the stakeholder comments received in response to DIAL's proposal and assisting the Authority in disposing the stakeholders comments on the fair rate of return issue.


Program on Indian Economic Policies: Free Trade, Democracy and Entrepreneurial Development

  • Completion date Jan., 2012
  • Sponsor Columbia University
  • Project leader M. G. Rao, Sudipto Mundle
  • Other faculty Pinaki Chakraborty
  • Consultants/Other authors Samik Chaudhury
  • Focus

    The objective of this study was to examine the differential growth performance across States in India and also to analyse the process of reforms in lagging and leading States in the country.

     


Review of Compliance with Provisions in the FRBM Act of Odisha 2011-12

  • Completion date Jan., 2012
  • Sponsor Government of Odisha
  • Project leader Tapas K. Sen
  • Other faculty P.R. Jena
  • Focus

    The report assessed the fiscal stance of the State Government while implementing the provisions of the FRBM Act for the year 2011-12 as per the amendments to the Act in accordance with the recommendations of the 13th Finance Commission. The review report contains detailed evaluation of the State finances as projected in the budget for the year 2011-12 and the budget outturns as reported in the Finance Accounts for the year, keeping the fiscal targets of the FRBM Act in view.


Promoting Effective Utilisation of the National Clean Energy Fund

  • Completion date Jan., 2012
  • Sponsor Climate Works Foundation
  • Project leader Rita Pandey
  • Focus

    The National Clean Energy Fund (NCEF), announced in Budget 2010-11, is seen as a major step in India's quest for energy security and reducing carbon intensity of energy. Funding research and innovative projects in clean energy technologies, and harnessing renewable energy sources to reduce dependence on fossil fuels constitute the objectives of the NCEF. It is observed that utilization of funds from NCEF has been rather low and disbursements, so far, are aligned more with on-going programmes/missions of various ministries/departments than with the stated objectives of the Fund. This poses potential risk of diluting the focus of NCEF with adverse implications for research and innovation in the clean energy sector in India. Especially, in the absence of any identified targets and prioritization.

    This study aims to provide a detailed framework for promoting effective utilization and administration of NCEF. It is hoped that the recommendations of the study will inform the government so that timely and appropriate revisions are made. The outputs of the study will also be useful to hone the strategic thinking on a suitable energy technology policy and an assessment of technology needs besides other barriers in clean energy sector in India.


Subsidy Elimination With and Without a Global Price Shock: The Macroeconomics of Oil Price Policy Reform

  • Completion date Jan., 2012
  • Sponsor Planning Commission
  • Project leader Sudipto Mundle
  • Other faculty N.R. Bhanumurthy
  • Consultants/Other authors Sukanya Bose
  • Focus

    Oil is a strategic commodity. The disruption of oil supplies, a quantity shock, can drive an economy to a grinding halt. The price of oil is an equally sensitive subject, both internationally and at home. Whenever global oil prices increase, it triggers a spike in inflation. In India, where the domestic price of most oil products are still largely administered, whenever global oil prices rise, the government is faced with a dilemma whether or not to pass on the price increase to domestic consumers. The oil price policy debate is often animated but rarely takes into account the complex mechanisms through which changes in the global price of oil effect macroeconomic outcomes such as inflation, growth, and the fiscal deficit. A study was undertaken to inform the policy debate by doing precisely this. It traced the linkages through which a change in the global price of oil impacts macroeconomic outcomes and quantified these impacts. The main channels through which the impact plays out were integrated into an empirically estimated macroeconomic model. The estimated model was then used to simulate different policy and oil price shock scenarios: a one shot full pass through without a global oil price increase, a gradual pass through without a global price increase, a one shot full pass through with a global price increase., and a gradual pass through with a global price increase. The main policy conclusions that emerged from a comparison of these simulation exercises suggest that a full pass through is desirable for fiscal consolidation and macroeconomic stability, as also to eliminate distortions in resource allocation. However, it would be prudent to eliminate the subsidies in a phased manner, rather than in a single shot, to avoid excessive macroeconomic instability.


Distribution of Public Spending Across Health Facilities: A Study of Karnataka, Rajasthan, Madhya Pradesh and Assam

  • Completion date Jan., 2012
  • Sponsor Ministry of Health and Family Welfare, Government of India
  • Project leader Mita Choudhury
  • Other faculty H.K. Amar Nath, Bharatee Bhusana Dash
  • Focus

    This study analyses the distribution of public spending across different tiers of the health system in four selected States of India Karnataka, Rajasthan, Madhya Pradesh and Assam. The study combines information from budgets with information on individual withdrawals from Government treasuries by Drawing and Disbursing Officers (DDOs) for the analysis. Our estimates suggest that the distribution of public spending across different levels of health facilities varies significantly across States. Public spending in primary health care services in Karnataka, Madhya Pradesh, and Rajasthan was higher than that in Assam. In contrast, the share of expenditure in tertiary health care services in Assam was significantly higher than the other three States. Public spending in secondary health care facilities was also lower than tertiary health care facilities, and the distribution did not follow the desired pyramidal structure in three of the four States analysed in the study. 


NIPFP-UIDAI Program on Financial Inclusion

  • Completion date Jan., 2012
  • Sponsor Unique Identification Authority of India
  • Project leader Ajay Shah, Ila Patnaik
  • Other faculty Madhavi Pundit
  • Consultants/Other authors Suyash Rai, Sumathi Chandrashekaran, Smriti Parsheera, Shubho Roy, Kumar Anand, Neena Jacob
  • Focus

    NIPFP collaborated on a research programme with the Unique Identification Authority of India (UIDAI) to improve knowledge through original research on public policy challenges to UIDAI in expanding financial inclusion in India. This includes, understanding the interface between the banking system, payments system, and challenges with the present regulatory framework for financial inclusion.


Impact of Gold on CAD and other Macroeconomic Outcomes in 12th Plan Period

  • Completion date Jan., 2012
  • Sponsor Planning Commission
  • Project leader Sudipto Mundle
  • Other faculty N.R. Bhanumurthy, Surajit Das
  • Consultants/Other authors Sukanya Bose
  • Focus

    Study evaluates possible impacts of rising gold imports as well as oil prices on the CAD and other important macroeconomic variables during the 12th Five Year Plan period. The study also identifies policy options to contain the CAD at 2.5 per cent by the end of 12th Plan and indicates the other macroeconomic outcomes related to these options.


Base paper for the Committee to Study Development in Hill States arising from Management of Forest Lands

  • Completion date Jan., 2012
  • Sponsor Planning Commission
  • Project leader Rita Pandey
  • Focus

    The objective of this paper is to examine the issues in development in States in India arising from management of forest lands with special focus on creation of infrastructure, livelihood, and human development and suggest measures to facilitate creation of infrastructure in hill States.


NRHM Expenditure at the State-level: A Focus on Rajasthan and Karnataka

  • Completion date Jan., 2012
  • Sponsor Ministry of Health and Family Welfare
  • Project leader Mita Choudhury
  • Other faculty H.K. Amar Nath, Bharatee Bhusana Dash
  • Focus

    This report analyses selected aspects of spending under the National Rural Health Mission (NRHM) in Karnataka and Rajasthan. Analysis of data from these two States suggests that funds provided by the Central government through NRHM have complimented the expenditure incurred by State governments. Data from these two States does not provide any evidence of substitution of spending by States with funds available under NRHM. Analysis of the pattern of spending shows that about 60-70 per cent of the funds provided under the flexible pools of NRHM are spent at/below the district level. The degree of decentralisation was higher in the RCH Flexible Pool than in the Mission Flexible Pool. The level of devolution of funds for facility-level spending was found to be higher in Karnataka than in Rajasthan. Through analysis of data collected from facilities and administrative offices in three districts, the study presents illustrations of the nature of utilisation of funds provided to facilities for discretionary spending. The study also attempts to identify factors that limit the level of effective utilisation of discretionary funds provided to facilities under NRHM.

     


Appraisal of Monitoring and Implementation of UIDSSMT Reforms in Maharashtra

  • Completion date Jan., 2012
  • Sponsor Ministry of Urban Development
  • Project leader Simanti Banyopadhyay
  • Focus

    The main objective of the study is to track the progress, meet stakeholders, identify key challenges and give a thorough review of the mandatory reforms in UIDSSMT schemes for cities in Maharashtra. The study is conducted with nine sample cities. The cities chosen are Aurangabad, Panvel, Shirdi, Malegaon, Panchgani, Jal, Latur and Kolhapur. The mandatory reforms are on account of e-governce, municipal accounting, property tax, user charges and interl earmarking for urban poor. The study scrutinizes elaborately the steps taken by the urban local government to comply with the agenda for reforms. It produces nine reports, one on each city. Overall the findings are satisfactory. All the urban local bodies have attempted to progress on the lines of the UIDSSMT reforms agenda. This is particularly true for e-governce and municipal accounting. The Government of Maharashtra also has contributed in developing an elaborate module for e-governce which can be adopted by the cities.


NIPFP-Department of Economic Affairs Research Programme - Phase II

  • Completion date Jan., 2012
  • Sponsor Ministry of Finance, Government of India
  • Project leader Ajay Shah, Ila Patnaik
  • Other faculty Radhika Pandey, Rudrani Bhattacharya
  • Consultants/Other authors Vimal Balasubramaniam, Shubho Roy, Madhavi Pundit, Bhavna Jaisingh, Sandhya Krishn, Ashish Kumar Jha, Pushpak Sarkar, Shreya Sinha, Ambarish Mohanty, Deepaloke Chatterjee, Pratik Datta, Tirveni Yadav
  • Focus

    The second phase of the NIPFP-DEA research programme looked at the larger canvas of fiscal, fincial, and monetary policy in an open economy setting with particular focus on the role that policy can play in stabilising business cycle fluctuations. The programme brought out research inputs including conferences and studies on a wide range of subjects addressing areas of current context/concern and issues emating thereof, as also those of direct relevance to policy making in DEA.


Preparation of the 12th Five Year Plan for Sikkim

  • Completion date Jan., 2012
  • Sponsor Government of Sikkim
  • Project leader Tapas Sen
  • Other faculty Anit Mukherjee
  • Consultants/Other authors Anuradha Bhasin
  • Focus

    The objective of the study was to prepare Fiscal Responsibility and Budget Magement Act and also to prepare a Medium Term Fiscal Plan for the state


Background Research for the Financial Sector Legislative Reforms Commission (FSLRC)

  • Completion date Jan., 2012
  • Sponsor Ministry of Finance, Government of India
  • Project leader Ajay Shah, Ila Patnaik
  • Other faculty Madhavi Pundit
  • Consultants/Other authors Suyash Rai, Shubho Roy, Radhika Pandey, Sumathi Chandrasekharan, Smriti Parsheera, Kausalya Venkataraman, Kumar Anand, Pratik Datta, Apoorva Ankur Mishra, Sowmya Rao, Ankur Narain Saxena, Amol Kulkarni, Bhavna Jaisingh, Aishwarya K, Parikshit Kabra, Neena Jacob.
  • Focus

    The FSLRC was given the mandate of rethinking and rewriting the entire gamut of Indian financial sector laws. The Macro/Finance Group at NIPFP provided research services on an ongoing basis to the Commission. The NIPFP provided economic, policy and legal inputs to the FSLRC on a wide range of issues like capital control laws, securities regulation.