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.

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; 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: 
  1. Singh J. and Lekhi R.K.., Public Finance, Jain PraksashNath& Company, 11th Edition, 2016.
  2. Bhatia, H. L.,Public Finance, Vikas Publication,30th Edition, 2000.
References: 
  1. Musgrave, R. A., Theory of Public Finance, McGraw Hill, 5th Edition, 2017.
  2.  Rosen H., Public Finance, Tata McGraw Hill, 8th edition, 2012. 
Academic Session: 
2022-23
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