Faculty Coordinator: Dr Kiran Kumar Kakarlapudi

Faculty Team: Dr Anil U P, Dr Akhil M P, Dr P S Renjith, Dr Sumalatha B S, Dr Shency Mathew

Raising adequate public revenues is fundamental to financing development and delivering essential public services in a developing country like India. However, despite repeated reforms including the introduction of Goods and Services Tax (GST), digitalisation of direct taxes, and rationalisation of exemptions, India’s tax-to-GDP ratio continues to lag behind that of comparable emerging and developed economies. The central policy challenge lies in moving from a tax-to-GDP ratio of around 18% to over 22%, without undermining growth or equity.

This research pillar focuses on exploring the structural and institutional constraints to revenue mobilisation and to identify strategies for strengthening fiscal capacity at both the Union and State levels. It encompasses the study of direct, indirect, and non-tax revenue instruments, with particular emphasis on tax design, incidence, tax effort, and administrative capacity. A key focus is the subnational dimension of why some States outperform others in revenue mobilisation, and how factors such as structure of the economy, fiscal devolution, political economy dynamics, governance structures, and digital infrastructure influence outcomes. Further, apart from sub-national comparison within the country, this pillar aims to carry out cross-country analyses of revenue mobilisation strategies to draw insights for India’s fiscal strategy.

By generating rigorous evidence and policy-relevant outputs, this pillar aims to position Gulati Institute of Finance and Taxation (GIFT) as a leading centre of excellence in revenue studies and contribute to the national dialogue on equitable, efficient, and sustainable public finance to meet the new development challenges.