Public Finance

Paper Code: 
ECO 601
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

The objectives of this course are-

1. To introduce students to the various aspects of Public Finance.

2. To help students to understand taxes, public expenditure and public debt.

3. To determine the role and objectives of Fiscal Policy.

                                       

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 601

Public Finance

CO 43: Understand the role of government in economic activities.

CO 44: Comprehend the different sources of public revenue.

CO 45: Acquire knowledge about different aspects of public expenditure and public debt.

 

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

 

Learning activities for the students:

Presentations, Assignments and Group discussions.

Class activity, Assignments and  Semester end examinations.

 

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.
  • Deficit Financing- Concept and Effects

 

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., Theory of Public Finane, McGraw Hill, Kognakhusa, Tokyo.
  2. Musgrave, R. A. and P. B. Musgrave, Public Finance in Theory and Practice, McGraw Hill, Kogakusha, Tokyo.
  3. Dalton, Huge, Principles of Public Finance, Rontledge and Hegan Paul Limited, London.
  4. Herber, B. P., Modern Public Finance, Richard D Iruin, Homewood.
  5. Datt, G. and Mahajan, A.,  Datt & Sundharam’s Indian Economy, S.Chand and Company Limited, New Delhi (latest edition).
  6. Ganguly S., Public Finance, The World Press Private Ltd. Calcutta.
  7. Andley and Sundaram, Public Finance, Latest edition, Ratan Prakashan, Agra.
  8. Mithani, D. M., Modern Public Finance, Himalaya Publishing House, Mumbai.

 

Academic Session: 
2020-21
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