Public Finance-II

Paper Code: 
ECO 611
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 
  1. To understand the various aspects of public expenditure and public debt.
  2. To acquaint the students with the centre state financial relations in India
  3. To explain the role and objectives of Fiscal Policy and deficit financing.

 

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 611

Public Finance-II

CO74: Students will analyse the trends, types and effects of public expenditure and public debt.

CO75: Students will examine the different types of Government budgets and various aspects of federal finance.

CO76: : Students will interpret the different aspects of fiscal policy

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: 
Public Expenditure
  • Meaning and classification of Public Expenditure;
  • Reasons for the growth of Public Expenditure;
  • Effects of Public Expenditure;
  • Trends in Public Expenditure in India.
  • Subsidies in India

 

9.00
Unit II: 
Public Debt
  • Objectives of  Public Debt;
  • Classification of Public Debt;
  • Burden of Public Debt;
  • Ricardo Pigou Thesis, Buchanan Thesis, BDK Thesis, Musgrave Thesis of Inter Generation Equality.
  • Effects of Public debt;
  • Methods of debt redemption;
  • Loans versus Taxes;
  • Trends in internal and external public debt in India.

 

9.00
Unit III: 
Federal Finance
  • Federal Finance – Justification and Principles
  • Federal Finance in India – Centre – State Financial Relations and Problems
  • Fourteenth Finance Commission 
9.00
Unit IV: 
Government budget
  • Government budget : Meaning & Purpose
  • Types of Government  Budget :Legislative & Executive; Multiple & unified; Conventional & Cash; Revenue & Capital; Incremental & Zero base; Development & Non Development ;  Economic and Functional classification of the Budget;
  • Concept of budget deficit – Revenue deficit, Budget deficit, Fiscal deficit, Primary deficit
  • Introduction to the concept of – Gender Budgeting.
  • Analysis of latest budgets of India and Rajasthan

 

9.00
Unit V: 
Fiscal Policy
  • Fiscal Policy – meaning, objectives and instruments;
  • Limitations of Fiscal Policy;
  • Deficit Financing-Meaning, Role and Effects.

 

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 Finane, 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 Financ, Rontledge and Hegan Paul Limited, London.

 

  • Ganguly S., Public Finance, The World Press Private Ltd. Calcutta.

 

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

 

 

Academic Session: 
2021-22
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