Public Finance (Theory)

Paper Code: 
24CFSG611
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to comprehend the fundamental principles and intricacies of public finance, fostering a comprehensive understanding of fiscal policies and their implications for economic stability and growth.

 

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course

Title

 

24CFSG 611

 

Public Finance

(Theory)

 

CO 193:Evaluate the scope, importance, and principles of public finance and government authorities.

CO 194:Examine the impact of public expenditure on the economy and understand its principles.

CO 195:Distinguish sources of government revenue and classify types of taxes.

CO 196:Analyze the effect of public debt and deficit financing in India.

CO 197:Evaluate India's federal structure and objectives and recommendations of Finance Commissions.

CO 198:Contribute effectively in course-specific interaction

 

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

 Learning activities for the students:                              Self learning assignments, Seminar presentation.

CA test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation.

 

12.00
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.

12.00
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.

12.00
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

12.00
Unit IV: 
Public Debt

• Meaning, Types of Debt, Effects of Public debts- production, distribution and consumption.
• 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: 

Suggested Readings :
• 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.

E-Content:
• National Digital Library
• World Ebook Library
• https://fincomindia.nic.in/
• https://finmin.nic.in/

Reference Journals:
• Public Finance Review: https://journals.sagepub.com/home/pfr
• South Asian Journal of Macroeconomics and Public Finance: https://journals.sagepub.com/home/smp

Academic Year: 
2024-2025
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