Public Finance

Paper Code: 
24DECO 601C
Credits: 
6
Contact Hours: 
90.00
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 acquaint the students with the center state financial relations in India.

 

Course Outcomes: 

Course Code

Course Title

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

 

24DECO 601 C

 

 

 

 

 

 

 

 

 

 

 

Public Finance

(Theory)

 

Students will:

CO55: analyze the fundamentals of public finance, fiscal functions, public, private and merit goods, market failure and principle of maximum social advantage

CO56: analyze the various aspects of public expenditure and its trends in India

CO57: analyze the various aspects of taxation and its trends in India.

CO58: examine the various aspects of public debt and its trends in India

CO59: comprehend financial administration &financial decentralization and analyze the current union budget.

CO60: contribute effectively in course-specific interaction.

Teaching Strategies:

Interactive Lectures, Discussion.

Learning activities for the students:

Presentations, Assignments and Group discussions.

 

Class activity, Assignments and Semester end examinations

 

 

18.00
Unit I: 
Introduction to Public Finance
  • Nature and scope of public finance
  • Fiscal functions: an overview
  • Public goods, merit goods and private goods
  • Market failure and externalities - Government intervention
  • Principle of maximum social advantage

 

18.00
Unit II: 
Public Expenditure
  • Public Expenditure: meaning, objectives, principles
  • Classification of public expenditure
  • Canons and effects of public expenditure;
  • Reasons for growth of public expenditure, Wagner’s law of increasing state activities; Peacock-Wiseman hypotheses
  • Public expenditure in India

 

 

18.00
Unit III: 
Public Revenue
  • Sources of public revenue;
  • Taxation - meaning, canons and classification of taxes,
  • Impact and incidence of taxes - Meaning
  • The benefit and ability to pay approaches,
  • Taxable capacity,
  • Effects of taxation,
  • Structure and trends of taxation in India

 

 

18.00
Unit IV: 
Public Debt
  • Objectives of public debt;
  • Similarities & dissimilarities between private & public debt
  • Classification of public debt;
  • Effects of public debt;
  • Methods of debt redemption;
  • Debt management,
  • Trends of public debt in India

 

 

18.00
Unit V: 
Financial Administration & Financial Decentralization
  • Kinds of government budgets;
  • Economic and functional classification of the budget. ,
  • Centre state financial relationship;
  • Role of finance commission;
  • Recommendations of the latest finance commission,
  • Fiscal federalism in India,
  • FRBM and Fiscal Consolidation Act
  • Current central government budget

 

 

Essential Readings: 
  1. Singh J. and Lekhi R.K., Public Finance, Kalyani Publishers, Reprint  Edition, 2021
  2. Bhatia, H. L.,Public Finance, Vikas Publishing House,30th Edition, 2020

 

References: 

Suggested Readings:

  1. J. Hindriks, G. Myles: Intermediate Public Economics, MIT Press, 2006
  2.  H. Rosen, T. Gayer: Public Finance, 9th ed., McGraw-Hill/Irwin, 2012
  3.  Joseph E. Stiglitz, Economics of the Public Sector, W.W. Norton & Company, 3rd edition, 2000
  4.  R.A. Musgrave and P.B. Musgrave, Public Finance in Theory & Practice, McGraw Hill Publications, 5th edition, 1989
  5.  Report of the latest  Finance Commission
  6.  Economic Survey, Government of India (Latest).
  7.  State Finances: A Study of Budgets, Reserve Bank of India (Latest).

E-Resources:

  1. http://www.untag-smd.ac.id/files/Perpustakaan_Digital_2/PUBLIC%20FINANCE%20Handbook%20of%20Public%20Finance%20(2004,%20Springer).pdf
  2. https://epgp.inflibnet.ac.in/Home/ViewSubject?catid=NEp/xikgBgNtfA+sgFQAcA==

Journals:

  1.  Public Finance Review https://journals.sagepub.com/home/pfr
  2. International Tax and Public Finance https://www.springer.com/journal/10797

 

 

Academic Session: 
2024-25
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