Public Finance-I

Paper Code: 
ECO 511
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 
  1. To understand the functioning of the state; and
  2. To understand the importance of taxes
9.00
Unit I: 
  • Nature and Scope of Public Finance;
  • Comparison between Private and Public Finance;
  • Concept of Private, Public and Merit goods;
  • Major Fiscal Functions-The Allocation Function, the Distribution Function, and the Stabilization Function.
9.00
Unit II: 
  • The Theory of Optimal Budget;
  • Principle of Maximum Social Advantage;
  • Sources and Classification of Public Revenue.
9.00
Unit III: 
  • Meaning and canons of Taxation;
  • Base of a tax;
  • Buoyancy and Elasticity  of a tax;
  • Tax Ratio;
  • Classification of Taxes: (Single Vs Multiple Taxes, Proportional Vs Progressive Taxes, Direct Vs Indirect Taxes) and their merits and demerits.
  • VAT & GST
9.00
Unit IV: 
  • Impact, Shifting and Incidence of a tax;
  • Forward and Backward shifting;
  • Shifting of a tax through Tax Capitalization;
  • Theories of Tax Shifting;
  • Incidence and shifting of commodity taxes under different cost conditions
9.00
Unit V: 
  • Justice in taxation: Benefit Approach and Ability to Pay Approach;
  • Taxable capacity;
  • Effects of Taxation;
  • Major trends in tax revenue of the central government in India.
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: 
2017-18
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