Public Finance

Paper Code: 
ECO 601
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 
  1. To understand the various aspects of Public Finance; and
  2. To determine the role and objectives of Fiscal Policy.
9.00
Unit I: 
Nature and Scope of Public Finance
  • Meaning and Scope of Public Finance;
  • Distinction between private & public finance;
  • Public goods versus private goods;
  • The principle of maximum social advantage.
9.00
Unit II: 
Public Expenditure
  • Meaning;
  • Comparison between private & public expenditure;
  • Classification of Public Expenditure – productive & unproductive, transfer & non transfer, current & capital;
  • Reasons for the growth of Public Expenditure;
  • Effects of Public Expenditure.
9.00
Unit III: 
Taxation
  • Meaning & Canons;
  • Classification –( Proportional, Progressive, Regressive, Degressive, Direct & Indirect, Specific & Ad Valorem;) and their merits and demerits
  • Effects of Taxation.
9.00
Unit IV: 
Public Debt
  • Objective of public debt;
  • Comparison between private & public debt
  • Classification of public debt – internal & external, marketable & non-marketable, productive & non productive, redeemable & irredeemable, funded & unfunded;
  • Effects of public debt;
  • Methods of debt redemption.
9.00
Unit V: 
Fiscal Policy
  • Fiscal Policy- Meaning & objectives;
  • Instruments of fiscal policy;
  • Limitations of fiscal policy.
Essential Readings: 
  1. Tyagi, B.P., Public Finance, Latest edition, Jain Praksash Nath & Company, Meerut.
  2. Bhatia, H. L., Public Finance, Recent Edition, Vikas Publication, New Delhi.
References: 
  1. Musgrave, Richard A. (1959), Theory of Public Finane, McGraw Hill, Kognakhusa, Tokyo.
  2. Musgrave, R. A. and P. B. Musgrave, 1980, Public Finance in Theory and Practice, McGraw Hill, Kogakusha, Tokyo.
  3. Dalton, Huge, Principles of Public Finance, 1971, Rontledge and Hegan Paul Limited, London.
  4. Herber, B. P., Modern Public Finance, 1976, Richard D Iruin, Homewood.
  5. Datt., Ruddar and K.P.M. Sundaram, Indian Economy, 2001, S. Chand & Company Limited, New Delhi.
  6. Ganguly S., Public Finance, 1999, The World Press Private Ltd. Calcutta.
  7. Andley and Sundaram, Public Finance, Latest edition, Ratan Prakashan, Agra.
  8. Mithani, D. M.; (1998), Modern Public Finance, Himalaya Publishing House, Mumbai.
Academic Session: 
2016-17
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