PUBLIC ECONOMICS II

Paper Code: 
ECO 225
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

To develop an understanding of various issues related to public Finance

12.00
Unit I: 
Public Debt
  • Classical View, Sources, Classification & Effects of Public Debt
  • Burden of Public Debt on Future Generation
  • Redemption of Public Debt
  • Public Debt Management: objectives & Principles
  • Trends of Public Debt in India
12.00
Unit II: 
Fiscal Policy
  • Fiscal Policy: Meaning, Objectives & Instruments
  • Fiscal Policy for  stabilization: Automatic Stabilizers & Discretionary Stabilizers
  • Interdependence of Fiscal & Monetary policies
  • Fiscal Policy in a developing economy
  • Balanced budget multiplier
12.00
Unit III: 
Deficit Financing & Budget
  • Deficit Financing: Objectives, Role, Effects & Limits
  • Budgetary Deficits
  • Central Government deficits since 1990-91
  • Government budget: meaning and purpose
  • Budget as an instrument of economic policy
  • The budgetary process in India: Preparation, legislation and execution
12.00
Unit IV: 
Investment Evaluation
  • Criteria for Public Investment
  • Project Evaluation
  • Cost benefit Analysis: Meaning, Criteria & Limitations
  • Planning & Programme Budgeting system(PPBS)
  • Zero Base Budgeting, performance budgeting, outcome budgeting, gender budgeting
12.00
Unit V: 
Federal Finance
  • Essential Features,  & Principles  of Federal Finance
  • The Rationale of Fiscal Federalism
  • Vertical & Horizontal Imbalance
  • Centre State Financial Relations in India
Essential Readings: 
  1. Musgrave, R. A. and P. B. Musgrave, 1980, Public Finance in Theory and Practice, McGraw Hill, Kogakusha, Tokyo.
  2. Dalton, Huge, Principles of Public Finance, 1971, Rontledge and Hegan Paul Limited, London.
  3. Herber, B. P., Modern Public Finance, 1976, Richard D Iruin, Homewood.
  4. Datt., Ruddar and K.P.M. Sundaram, Indian Economy, 2001, S. Chand & Company Limited, New Delhi.
  5. Ganguly S., Public Finance, 1999, The World Press Private Ltd. Calcutta.
  6. Goode, R.(1986), Government Finance in Developing Countries, TMH, New Delhi.
  7. Jha. R.(1998), Modern Public Economics, Routledge, London.
  8. Atkinson, A.B. and J.E. Siglitz (1980), Lectures on Public Economics,TMH, New York.
  9. Tyagi, B.P., Public Finance, Latest edition, Jain Praksash Nath & Company, Meerut.
  10. Bhatia, H. L., Public Finance, Recent Edition, Vikas Publication, New Delhi.
  11. Musgrave, Richard A. (1959), Theory of Public Finane, McGraw Hill, Kognakhusa, Tokyo.
Academic Session: 
2017-18
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