The Government of Odisha, Finance Department vide Resolution No. 21304 dated 4th August, 2015 established the Centre of Excellence for Fiscal Policy and Taxation (CEFT) in collaboration with Xavier University.
The State Fiscal Policy Analysis Unit (FPU) provides analyses of the State government’s budget, revenues, expenditures, and intergovernmental finances and evaluations of proposed legislative changes in these areas. Fiscal Policy Analysis Unit (FPU) contributes to the policymaking process, improving the quality of government planning and policy formulation through the evaluation of the impact of proposed fiscal changes in the State economy. FPU helps in in expanding the coverage, accuracy and timeliness of monitoring and forecasting on a variety of fiscal variables while helping State Governments in managing and aligning their expenditure and revenue flows.
In order to achieve fiscal consolidation and sustainability, the FPU will play a proactive role through contextual empirical research for formulation of informed and efficient decision-making in fiscal management & taxation, promoting macro-prudential fiscal and taxation norms, providing policy inputs for public expenditure management.
Considering the need for research support and academic input for mobilization of resources through tax & non tax revenues, inter-governmental transfers, rationalization of public expenditure, and for formulation of fiscal policy, the Government of Odisha has decided to establish “Centre of Excellence in Fiscal Policy and Taxation (CEFT)” in collaboration with Xavier University at Bhubaneswar.
The establishment of the Centre of Excellence in Fiscal Policy and Taxation (CEFT) will signify the commitment of the State to institutionalize the process of implementing the Fiscal Responsibility and Budget Management Act, 2005 and successive recommendations of Finance Commissions in letter and spirit.
The “Centre of excellence in Fiscal Policy and Taxation” has envisaged serving the larger purpose of making research on the overall fiscal policies of the State, providing assistance to the Finance Department of the Government of Odisha for budgetary activities, providing analysis on fiscal & taxation issues.
CEFT will be engaged in research and provide inputs with a strong academic base and core competence in federal finance and taxation to the Government. CEFT will contribute in creating State-of-the-art fiscal governance system that optimizes mobilization as well as use of resources for rational, equitable and sustainable use. CEFT will be positioning itself as the first point of reference for policy research in tune with the Sound Principles of Taxation and matching principles of Fiscal responsibility and Budget Management Act.
The objective of the CEFT is to provide evidence-based and empirically sound policy inputs to the Government on State finance, taxation, fiscal federalism, financial devolution, inter-governmental issues and, fiscal governance. The CEFT would provide quantitative & qualitative fiscal reports & suggestions to decision-makers, prepare policy inputs for the formulation of the Annual Budget of the State indicating the policy intervention required in the areas of tax & non tax revenue and allocative efficiency in the public expenditure, prepare the research papers & newsletters and provide forum for interaction between the department officials and the academicians. The CEFT will function as a resource Centre on State finance and taxation by networking and collaborating with outstanding academic and policy-oriented institutions in India and abroad. It will also provide support to State governments and various committees at the central and State levels in the context of State taxes and the introduction of the goods and services tax (GST).
Besides, it will guide and promote doctoral students sponsored by the Government of Odisha.
The CEFT will conduct seminars and discussions at regular intervals on various aspects of State finance as well as contemporary issues pertaining to inter-governmental fiscal relations in the era of NITI Aayog and Goods & Services Tax (GST).
The Centre of Excellence in Fiscal Policy and Taxation (CEFT) will be first of its kind in the State.