PUBLIC FINANCE

Paper Code: 
DFSG 603 A
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Outcome (COs):

Learning Outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

On completion of this course, the students will be able to:

 

CO 136 Comprehend the concept and evaluate the scope and importance of public finance and the basic principle behind the working of government authorities.

CO 137 Critically examine the effect of public expenditure on the economy and understand the various principles of public expenditure.

CO 138 Distinguish between the various sources of government revenue and classify the various types of  taxes.

CO 139 Analyse the effect of public debts and deficit financing with special reference to India.

CO 140 Critically evaluate the Federal structure of India and the objectives and recommendations of various Finance Commissions.

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Practical cases Demonstration, Power point presentation.    

Learning activities for the students:                              Self learning assignments, Effective questions, Seminar presentation, Live practical problems analysis

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

 

Unit I: 
Public Finance

• Meaning and Scope,
• Distinction between Private and Public finance.
• Role of public finance in augmenting allocative efficiency, distribution justice and economic stability in the economy
Principles of Maximum Social Advantage:
• Dalton’s Pigou and Musgraves condition of maximum social advantage

Unit II: 
Public Expenditure

• Meaning, Nature and significance,
• Canons of Public Expenditure,
• Effects of Public Expenditure on economic stabilization, production, distribution and economic growth.
Public Budget:
• Kinds of budget, economic and functional classification of the budget;
• Balanced and unbalanced budget, Steps of Preparation of union budget.

Unit III: 
Public Revenue

• Meaning, Canons of taxation, Incidence and Effect of Taxation,
• Classification of Taxes(Single vs. Multiple, Proportional vs. Progressive, Direct and Indirect Tax).
• VAT, GST, concept and implications.
• Problem of tax evasion and black money, Role od direct and indirect taxes in developing countries

Unit IV: 
Public Debt

• Meaning, Types of Debt,
• Theories of Public Debt.
Deficit Financing:
• Various concepts of Deficit Financing- Revenue deficit, Fiscal deficit, and Primary deficit

Unit V: 
Federal Finance

• Meaning of federal finance
• Principles of federal finance, Centre- State financial relations in India.
Finance Commission-
• Introduction, Structure and functions
• Recommendations of recent Finance Commission.
Present fiscal policy of India

Essential Readings: 

• H.L.Bhatia – Public Finance, Vikas Publishing House Pvt Ltd.,Delhi
• B.P.Tyagi – Public Finance, Jai Prakash Nath & Co., Meerut.
• Musgrave R.A. and Musgrave P.A. – Public Finance in Theory and Practice., Tata Mc graw Hill
• Sarma L.S and MankarV.G: Public Finance Theory and Practice, Himalaya Publication

References: 

• Jain, Khanna and Tiwari, “Banking and Public Finance”, V.K.India Enterprises, New Delhi
• M.L.Seth, Money, Banking, International Finance and Public Finance, Educational Publication, Agra.
• Mithani D.M, Money, Banking, International Trade and Public Finance. Himalaya Publishing House.

Academic Year: 
2023-2024
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