Legal Dimensions of Fiscal Governance
Faculty Coordinator: Dr Vidya V Devan
Faculty Team: Dr Meenu Mohan, Dr U P Anilkumar
In the contemporary global landscape, the state’s role has transcended its conventional functions of law enforcement and public administration. It operates as a regulator of markets, a catalyst for economic growth, and a guarantor of social justice. Beyond domestic governance, the state engages actively in global affairs, shaping international norms, negotiating treaties, and addressing transnational challenges. The state acts in accordance with the Constitution of India, and all its actions and functions must conform to the legal and normative framework established by it. When the dimensions of development transform the economic, social, and political spheres, the role of the state must also evolve correspondingly. A state functioning within the framework of its constitution may, therefore, require constitutional and other legal reforms to align its structure and functions with the changing phase of development. Such adaptation ensures that governance remains responsive, relevant, and effective in addressing emerging challenges in a dynamic world.
This pillar focuses on the analysis of the legal structure of fiscal governance in India, focusing on the principles of fiscal federalism, accountability, and responsible public finance management. It aims to explore how constitutional provisions, statutes, and institutional mechanisms collectively shape taxation, budgeting, debt management, and how these frameworks can be strengthened to promote equity, transparency, and sustainability in the management of public resources.
- Fiscal Federalism under the Indian Constitution
Fiscal federalism is the heart of a nation’s economic governance, shaping how resources are mobilized, distributed, and utilized across different tiers of government. In India, the constitutional framework governing taxation, expenditure, and public debt reflects a delicate balance between national unity and regional autonomy. This research focuses on the legal architecture of fiscal federalism and its implications for equity, responsibility, and accountability in public finance. It explores how constitutional design, statutory frameworks, and institutional mechanisms interact to promote fiscal justice and sustainable financial governance.
- Taxation and Equity in Fiscal Policy
The taxation policies of a country determine the avenues for revenue generation, and it designs equitable fiscal policies for the welfare of the people. Research on taxation helps identify gaps, inefficiencies, and inequities in tax systems, enabling reforms that promote economic growth and social justice. Additionally, such research strengthens legal and institutional frameworks, ensuring transparency, accountability, and effective public financial management.
- Fiscal Responsibility and Fiscal Management
This area focuses on the concerns of public debt management and fiscal responsibility, exploring how constitutional and statutory limitations, particularly under the Fiscal Responsibility and Budget Management (FRBM) Acts, constrain borrowing powers and promote long-term sustainability.
- Budget and Financial Governance: For ensuring transparency and Public Accountability
The research focuses on how budgetary processes and fiscal administration serve as instruments of governance, ensuring efficient allocation of resources and adherence to legal and constitutional mandates. It also explores mechanisms for transparency, accountability, and fiscal discipline, assessing their impact on public trust and sustainable financial management.