NIPFP is a centre for research in public finance and public policy established in 1976 as an autonomous society. The main aim of the institute is to contribute to policy making in spheres relating to public economics.
The governing body of the NIPFP is responsible for providing general policy directions to the institute. It comprises of a Chairman, two representatives of the Ministry of Finance, Government of India, one representative each of the Planning Commission of India, Reserve Bank of India and the Industrial Credit and Investment Corporation of India, three eminent economists and taxation experts and twelve other members representing state governments, research institutions, scientific societies and special invitees. Dr. C. Rangarajan is the Chairman of the Governing Body, and Professor M. Govinda Rao, Director of the Institute, is its Members Secretary and Chief Executive. The administrative set up of NIPFP is headed by the Director, assisted by the Administrative and Accounts divisions of the Institute.
The NIPFP receives an annual grant-in-aid from the Ministry of Finance, Government of India and from various State Governments. This grant is supplemented by the funds from its sponsoring, corporate, permanent and ordinary members. Furthermore, the NIPFP undertakes commissioned studies for national, international and bilateral agencies.