Public Finance-I

Paper Code: 
ECO 511
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

      1. To explain the various aspects of Public Finance like its nature scope, concept of private, public and merit goods, major fiscal functions

2. To appraise the students with various aspects of taxation.

3. To analyze the Major trends in tax revenue of the central government in India.

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 511

Public Finance-I

CO62: Students will analyse the role of government in economic activities.

CO63: Students will analyse different aspects of taxation like Impact, Shifting, Incidence of a tax and justice in taxation.

 

CO64: Students will interpret the trends in tax revenue of the central government in India.

 

 

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

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: 
Optimal Budget and Public Revenue

The Theory of Optimal Budget; Principle of Maximum Social Advantage; Sources and Classification of Public Revenue.

 

9.00
Unit III: 
Taxation I

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: 
Taxation II

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: 
Taxation III

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: 
  • Tyagi, B.P., Public Finance, Latest edition, Jain Praksash Nath & Company, Meerut.

 

  • Bhatia, H. L., Public Finance, Recent Edition, Vikas Publication, New Delhi.

 

  • Musgrave, Richard A., Theory of Public Finance, McGraw Hill, Kognakhusa, Tokyo.

 

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

 

  • Dalton, Huge, Principles of Public Finance, Rontledge and Hegan Paul Limited, London.

 

  • Datt, G. and Mahajan, A.,  Datt & Sundharam’s Indian Economy, S.Chand and Company Limited, New Delhi (latest edition).
  • Ganguly S., Public Finance, The World Press Private Ltd. Calcutta.

 

  • Andley and Sundaram, Public Finance, Latest edition, Ratan Prakashan, Agra.

 

  • Mithani, D. M., Modern Public Finance, Himalaya Publishing House, Mumbai.

 

Academic Session: 
2021-22
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