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

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.

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.

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.)

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.

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.

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.

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 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.

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.

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

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.

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.

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.

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.

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.

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.

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.