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.

 

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. Lekhi, R. K. and Singh Joginder Public Finance, Latest edition, Kalyani Publishers, Ludhiana. 2018
  2. Bhatia, H. L., Public Finance, Recent Edition, Vikas Publication, New Delhi. 2018

 

References: 
  1. Musgrave, Richard A., Theory of Public Finance, McGraw, 1959.
  2. Musgrave, R. A. and P. B. Musgrave, Public Finance in Theory and Practice, McGraw Hill Education; 5th edition 2017.
  3. Datt, Ruddar and Sundharam  K P M Indian Economy, S. Chand & Company Limited, New Delhi 2018.
  4. GangulySobrata, Public Finance, The World Press Private Ltd. Calcutta. 1992
  5. Rosen,  S. Harvey and Gayer, Ted  Public Finance, Latest Edition, Tata  MCGraw Hill Education Private Limited, New Delhi2012
  6. Hindriks, Jean and Myles, D. Gareth, Intermediate Public Economics, Latest Edition, PHI Learning Private Limited, Delhi 2014

 

Academic Session: 
2022-23
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