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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. Jothi Sivagnanam, Chairperson, School of Economics, University of Madras