Public finance consists of two broad areas: the economic impact of large spending programmes, and the impact of raising additional revenue to finance a larger state.The research in this theme will inform policy decisions about programme implementation and provide policy recommendations on optimal spending and taxation plans.

• How does taxation affect economic markets and incentives (labour market, corporate investment, inequality and growth)?
• What are the optimal tax rates and tax multipliers in South Africa?
• How can carbon taxation be used as a key mitigation tool?
• Evaluations of specific proposed spending programmes and associated revenue-raising policies?