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Centre for Public Finance

The Government of Tamil Nadu supported Madras School of Economics (MSE) to establish the Centre for Public Finance by sanctioning
Rs. 5 crore corpus fund (one time) and Rs. 1 crore recurring fund every year. The centre started functioning from April 01, 2021.The Centre for Public Finance is part of the new entity “Madras School of Economics-Institute of Special Importance” that has emerged as per Madras School of Economics Act 2020. This will function in the premise of Data Centre Land and Building to be given to MSE. Until then, it functions at the MSE premises.
The Centre will have a strong focus in theoretical and empirical issues on public finance. It would undertake both theoretical and applied research relating to fiscal management at the union, State and local levels. The important areas that will be taken up are:
  • (i) Issues in Deficit and Debt. Stability and sustainability of debt at Union and State levels.
  • (ii) Monetary – Fiscal policy interactions.
  • (iii) Tax policy and reforms at Union, State and local levels. Design and implementation issues and effects of tax policy.
  • (iv) Allocative and technical efficiency on public spending, expenditure management; Public expenditure and financial accountability (PEFA);
  • (v) Economics of the Education and Healthcare.
  • (vi) Public Investment appraisal and cost- benefit analysis.
  • (vii) Issues in public enterprise reform.
  • (viii) Fiscal federalism in India, intergovernmental finance; its rationale and effects.
  • (ix) State and local finances.
  • (x) Environmental/Ecological issues.

The Centre would provide policy advice to the Government based on its researches conducted in the above areas. In addition, the CPF would also undertake any other study that is referred to the Centre by the GoTN. Apart from these general research activities, the Centre will work on the followings on regular basis:

(A) Build a state level Macro fiscal model to provide the forecast of the fiscal and (selective) economic parameters of the State of Tamil Nadu;

(B) Conduct an Annual conference on topics related to Public Finance and Policy

(C)  A summer course on Indian Public Finance

Advisory Council for Centre for Public Finance at MSE

Dr. C. Rangarajan, Chairman, MSE (Chair)

Dr. K.R. Shanmugam, Director, MSE

The Secretary to Government in-charge of-Finance Department, Govt, of Tamil Nadu (or his nominee)

Dr. M. Govinda Rao, Member 14th Finance Commission

Dr. D.K. Srivastava, Chief policy Advisor, E&Y, New Delhi

Dr. Pinaki Chakraborthy, Director, NIPFP

Dr. K.J. Joseph, Director, Gulati Institute of Finance and Taxation, Kerala

Dr. JVM Sarma, (Professor & in charge, Centre for Public Finance), Member Secretary

Activities of the Centre in 2021

On Line Meeting on Budget Presentation:
The Centre organized its first event “Virtual Meeting on Improving the Presentation of Tamil Nadu Budget Document” on April 29, 2021 at from 10.30 a.m to 1.00 p.m at New Conference Hall, MSE. The main objective of the virtual interactive meeting was to get views and inputs from experts/academicians/researchers on existing budget documents so as to improve the content and quality of the budget publications and make them more user friendly and at the same time ensuring compliance under FRBM/FC/GOI norms.

Training Programs on Public Finance for Government Officials
The Centre organized the 5-day training programs on Public Finance for 15 batches of Group A and Group B officials of Government of Tamil Nadu through online mode between August and December 2021. Out of 362 officials for whom the invitation was sent, 270 officials participated the program and they were given each the certificate of participation. The Centre also shared the power point presentations used by the resource persons in the training program with all participants and sent the video coverage link of all lectures to them for listening them later.

Activities of the Centre in 2022

Working papers by the Centre
As approved by the Advisory Council of the Centre in its first meeting, the following working papers are published in the MSE website:
1. Intergovernmental Fiscal Relations in India: Time for the Next Generation Reforms (D.K. Srivastava, EY, New Delhi)
2. Evolving Issues and Future Directions in GST Reform in India (M.Govida Rao, Bangalore)
3. Sustainability and Threshold Value of Public Debt in Tamil Nadu (K.R. Shanmugam and K.Shanmugam, Madras School of Economics)
4. Fiscal Transfers, Climate Risks, and Partisan Politics: Does the Nature of Climate Risk Matter? (K.S. Kavikumar and Anubhab Pattanayak, Madras School of Economics)
5. Compliance Costs of GST for Small Business Enterprises in Tamil Nadu (S. Vishnuhadevi and D. Hima Bindu, Steall Maris College)
6. Examining the Efficiency of Biodiversity Finance Action Plan Across the Indian Megacities (Zareena Begum Irfan, Madras School of Economics)
7. Achieving One Trillion Dollar Economy for Tamil Nadu: Some Implications and Concerns (C. Rangarajan & K.R. Shanmugam, Madras School of Economics)
8. Tamil Nadu State Finances: Issues and Options (Pinaki Chakraborty, former Professor, NIPFP)
9. Fiscal Federalism in India: A Case for Reassigning of Tax Powers (R. Srinivasan & S. Raja Sethu Durai)

Activities of the Centre in 2023

National Conference on “Public Finance Isues”
The Centre is organising its first two day national conference on “Public Finance Issues” to be held on the 20th and 21st of January 2023 at the Centre for Public Finance, Madras School of Economics. We believe that this conference will provide a platform for researchers, policymakers, and practitioners to share their insights and experiences on public finance issues in India, with a special focus on issues specific to Tamil Nadu. The conference will feature five special lectures and 17 paper presentations by distinguished scholars and policymakers.

The programme schedule can be accessed here.