The study involves designing a performance-based grant system (PBGS) for 13 Municipal Corporations in Punjab under the World Bank co-financed Building Fiscal and Institutional Resilience (BFAIR) Project. The PBGS design will aim to incentivize improved governance and service delivery across the 13 corporations in Punjab.

The objective of the project is to update the adaptation spending by the Union Government for the Budgets 2024-25 and 2025-26. This is in continuation with the previous studies on climate spending for adaptation activities by the Union Government.

This paper assesses the effectiveness of macroprudential policy (MPP) tools in shielding Emerging Market Economies (EMEs) from global financial shocks. Using a state-dependent local projection method, it found that MPP tightening helps moderate the adverse effects of VIX shocks on GDP, exchange rates and portfolio inflows, while also reducing the spillover of US monetary policy into EMEs’ monetary and inflation dynamics. However, not all tools are equally effective — capital buffers and SIFI restrictions show strong stabilizing effects, whereas liquidity buffers and LTV restrictions may initially exacerbate volatility. Overall, the results support MPPs as vital tools for macro-financial stability in EMEs.

Average global inflation remained stable at 2.5 percent in the decade of 2011-20. Inflation climbed up from 2021 and spiked in 2022 due to supply disruptions across the world. Headline inflation in India exceeded the upper limit of RBI’s tolerance band during the COVID and post-COVID period. This study explores the changing pattern of the contribution of supply disruption in headline inflation in India.

Any tax regime creates a system for compliance by the taxpayer and imposes certain tax and compliance costs on the taxpayer. In the interaction between the tax system and the taxpayer, there arise possibilities of some friction. Disagreements could arise in the interpretation of the law in any particular case. The law provides a mechanism for resolution through the dispute settlement process. A taxpayer may perceive some challenges in complying with the tax regime. Some of these could be addressed through administrative measures.

The study proposes to examine the landscape of friction between the taxpayer and the tax system for the Income-Tax regime.