PUBLIC ECONOMICS-II

Paper Code: 
ECO 225
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 
  1. To help students understand the various aspects related to public debt and to analyze the trends of public debt in India.
  2. To determine the role and objectives of fiscal policy, deficit financing and budget. To help understand the budgetary process in India. The student will understand the various types of budget and the investment evaluation.
  3. To analyze the centre state financial relations in India in relation to fiscal federalism.

 

Course Outcomes (COs):

Course

Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 225

Public Economics-II

CO26: Students willcomprehend various aspects of public economics like public debt, public investment and federal finance.

CO27: Students willexamine the budgetary process of India.

CO28: Students willanalyse the instruments and role of fiscal policy. 

Approach in teaching: Interactive Lectures, Discussion,  Case studies.

 

Learning activities for the students:

Presentations, Assignments and Group discussions.

Class activity, Assignments, Quiz and  Semester end examinations.

 

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; Role of Finance Commission; Recommendations of 15th Finance Commission

Essential Readings: 
  1. Musgrave, Richard A., Theory of Public Finance, McGraw, 1959.

 

  1. Musgrave, R. A. and P. B. Musgrave, Public Finance in Theory and Practice, McGraw Hill Education; 5th edition 2017.

 

  1. Datt, Gaurav and Mahajan Ashwani, Datt&Sundharam’s Indian Economy, S. Chand & Company Limited, New Delhi (latest edition).

 

  1. GangulySobrata, Public Finance, The World Press Private Ltd. Calcutta.

           

  1. Tyagi, B.P., Public Finance, Jain PraksashNath& Company, Meerut, (latest edition).

 

  1. Bhatia, H. L., Public Finance, Vikas Publication, New Delhi, (latest edition).

 

Academic Session: 
2021-22
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