The project, funded by Administrative Reform Commission, Government of India, outlines a coherent approach to expenditure magement, with a view to bring about a systemic change in the process of expenditure decision making and control, both at central and state levels so that reforms in various components relating to fincial magement fall in place and reinforce each other within an overarching concept and philosophy. The report contains recommendations on strengthening budgetary process by taking programme-based approach with a multi-year perspective to become more performance-oriented. The report also examines the institutiol aspects relating to budgetary process, fincial magement systems, smooth flow of funds for programmes, interl audit and control systems, exterl audit systems, to recommend suitable reform measures. In this context, strengthening state treasury system through use of information technology for better budgetary control in an integrated fincial magement framework is also emphasised.

This study attempts to design a scheme for transfer of resources from the centre to states to eble them to provide certain minimum standards of health services. Specifically, two altertive approaches are being explored using data from 15 major states in India. The first approach involves estimation of the expenditure requirements according to the physical norms prescribed by the Ministry of Health and Family Welfare along with other policy goals. The second approach attempts to estimate an expenditure function and use it to alyse the differences in the required expenditure of the health sector across states.

The primary objectives of the project were to compute expenditure needs (estimated in the case of Kolkata, but computed in the case of other cities due to lack of data), revenue capacities and come up with fiscal gaps faced by these cities in the provision of core urban services such as water supply, sewerage, sanitation, solid waste, municipal roads, and street lights for all local governments within these urban agglomerations. For estimating revenue capacities, the non-agricultural district domestic products for the districts in which the local governments were located, were used. For computing expenditure needs, standard norms on what is acceptable for expenditure on various public services were used, and gaps between desired and actual expenditure were arrived at. The difference between the actual expenditure gaps and the potential revenue capacity was computed as the fiscal gap. Six reports were submitted to the World Bank for each of the cities -- Kolkata (in June 2007), Delhi, Pune, Hyderabad (in December 2007), Cheni, in addition to a synthesis report (in February 2008).

The objective of this project was to investigate various aspects of tobacco products such as its consumption, effect on health, optimal level of taxation to curb consumption of these harmful products while raising revenue out of these products.

This study at NIPFP discusses various taxes that are imposed on different tobacco products. While alysing the effect of taxation on the consumption of tobacco, the report reflects the affordability index and trend in relative prices of various tobacco products over the years. The study also emphasises the issue of progressivity of the tax structure of tobacco products. It is also clear from the alysis that the tobacco tax structure is somewhat regressive in ture.

NIPFP, in collaboration with the American University, Washington DC and University of Kwazulu-tal, South Africa, is part of this multi-country research team and has conducted research on gender dimension of taxation for both direct and indirect taxes in India. Gender dimension of direct tax has been alysed by detailed alysis of the direct tax codes through a gender lens, while for indirect taxes an alysis of household level tax incidence is undertaken.

The study presents the estimate of implicit subsidy at the aggregate (sectoral) level for four sectors mely, drinking water, irrigation, power, and road transport. Specific services in power and road transportation sectors have also been alysed to draw practicable reform directions to the Fince Department, Government of Rajasthan.

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A draft memorandum for submission to the Thirteenth Fince Commission was prepared at the instance of the Government of Punjab.

The study deals with decentralisation in Sri Lanka primarily with respect to provincial councils, the second tier of government. It examines the pattern of expenditures and their fincing at the provincial level, the assignment of revenue (tax) handles, and the system of intergovernmental transfers in order to provide suggestions for improving the equity and efficiency of the system. It argues for a better defined role of provincial councils in the delivery of services, a more ratiol and predictable system of intergovernmental transfers that constitute the primary source of funds for the provinces, and suggests altertives to the present tax system – particularly with reference to indirect taxation – that would be more efficient. The study does not recommend borrowing powers for provinces at the present juncture owing to fincial weaknesses.

As part of the work for this study, two training programmes for Sri Lankan officials including those from the provincial councils as also from the Fince Commission were conducted at the Institute during November-December, 2007.

The paper aims to assess the fiscal health of five urban agglomerations (UAs) in India viz. Delhi, Hyderabad, Kolkata, Cheni, and Pune. The main objective of the paper is twofold First, to review the status of revenue generation and expenditure responsibilities of the constituent ULBs. Second, to assess the magnitudes of their fiscal gaps by estimating the expenditure needs and revenue capacities and give some useful recommendations to reduce these gaps. The main findings suggest that excepting five small ULBs in Hyderabad, others are not in a position to cover their expenditure needs through their present revenue collections. All UAs have unutilised potentials for revenue generation with the exception of one UA i.e, Hyderabad. All others would fail to cover their expenditure needs, even if they realise their revenue potentials. In all UAs, except Cheni, bigger corporations are more constrained than the smaller ULBs. The paper recommends better utilisation of ’own revenue’ handles of the cities, by improved administration of property taxes, implementation of other taxes, and collection of user charges.

The Jawaharlal Nehru tiol Urban Renewal Mission (JnNURM) requires cities applying for assistance to lay down a time schedule for implementing the proposed reform agenda. The reform agenda consists of reforms that (i) are to be undertaken by urban local bodies (ULBs), and (ii) those to be undertaken by the state governments. The time schedule (together with the milestones to be achieved) is incorporated in the Memorandum of Agreements (MoAs) which are signed by the state governments, ULBs, and the Ministry of Urban Development.

This study, undertaken for the Tax Research Unit set up at NIPFP by the Department of Revenue, Ministry of Fince, focuses on the exemptions accorded to small scale units within the central excise regime. The objective of the study is to assess the impact of these exemptions on the units. The conclusion drawn first is that while there is agreement on the need for an exemption threshold, the form and level should be based on the ratiole for providing the exemption, and second, the costs to the exchequer of this exemption clearly exceed the benefits derived by the intended beneficiaries, although they might fall short of the benefits derived by all beneficiaries.

The Vision statement alludes that the region should usher in peace and prosperity for the region. By 2020, the region should have a per capita income which should at least be equal to the tiol average and poverty should be banished from the region. To achieve these goals, the document puts forth six interdependent components of the strategy mely (empowerment of the people through participatory governce; (ii) focus on rural development through increase in agricultural productivity and creation of non-farm employment opportunities; (iii) development of sectors with comparative advantage; (iv) maximising self governce and participatory planning and diplomatic initiatives to foster trade with neighboring countries; (v) augmenting physical and social infrastructure in the region; and (vi) ensuring adequate flow of resources for infrastructure from the governments and fostering public private partnerships in infrastructure, wherever feasible.

The report estimates (a) tax collection from petroleum products and tural gas by the central and state governments; and (b) subsidies on individual petroleum products. Petroleum products considered in the study include motor spirit; high speed diesel; aviation turbine fuel; superior kerosene oil; liquefied petroleum gas; phtha; bitumen; compressed tural gas; and liquefied tural gas. The study explicitly examines the tax structure and projects future revenues from taxation of petroleum products and tural gas by the central government and state governments for the year’s upto 2011-12.

Using actual tax receipts up to Dec. 31, 2007, the earlier projections of CT and IT receipts at the end of the FY 2007-08, and the forecast of persol income tax and corporation tax were revised and submitted to the Ministry of Fince.

The work involved assessing progress of the state government in achieving the targets under the FRBM Act in the state of Goa and preparing a medium term fiscal plan for the year 2007-08 to 2010-11.