Public economics - II

Paper Code: 
ECO 225
Credits: 
60
Contact Hours: 
4.00
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, Richard A. (1959), Theory of Public Finance, McGraw Hill Inc., US, 1959.
2. Musgrave, R. A. and P. B. Musgrave, Public Finance in Theory and Practice, McGraw      Hill Education; 5th edition 2017.
3. Datt, Gaurav and Mahajan Ashwani, Datt & Sundharam’s Indian Economy, S. Chand        & Company Limited, New Delhi, latest edition.
4. Ganguly S., Public Finance, The World Press Private Ltd. Calcutta, 1999.
5. Tyagi, B.P., Public Finance, Jain Praksash Nath & Company, Meerut, latest edition.
6. Bhatia, H. L., Public Finance, Vikas Publication, New Delhi, latest edition.

 

Academic Session: 
2018-19
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