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.

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: 
  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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