Public Finance

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

1. To orient the students with the nature and scope of Public Finance.

2. To comprehend the meaning, classification and effects of public expenditure, taxation and public debt.

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

9.00
Unit I: 
Nature and Scope of Public Finance
  • Meaning and Scope of Public Finance;
  • Fiscal functions of the government : Allocation, Distribution & Stabilization 
  • Comparison between private & public finance;
  • Public goods , private goods and merit 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.
  • Canons of 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. Mithani, D. M., Money, Banking, International Trade And Public Finance Himalaya Publishing House, 2018.

2. Lekhi, R. K. and Singh Joginder Public Finance, Latest edition, Kalyani Publishers, 2015.

References: 

1. Bhatia, H. L., Public Finance, Recent Edition, Vikas Publication, 2018.

2. Musgrave, R. A. and P. B. Musgrave, Public Finance in Theory and Practice, McGraw Hill, Kogakusha, 2017.

Academic Session: 
2022-23
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