Public Finance

Paper Code: 
24DBSG613B
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable students to understand the principles and practices of public finance, covering topics such as public expenditure, revenue, debt, deficit financing, federal finance, and the role of the Finance Commission in India, fostering a comprehensive understanding of fiscal policies and their implications.

 

 

Course Outcomes: 

Course

Course Outcomes

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course Title

24DBSG613B

Public Finance

(Theory)

 

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

CO 229 Comprehend the concept and evaluate the scope and importance of public finance and the basic principle behind the working of government authorities.

CO 230 Critically examine the effect of public expenditure on the economy and understand the various principles of public expenditure.

CO 231 Distinguish between the various sources of government revenue and classify the various types of  taxes.

CO 232 Analyse the effect of public debts and deficit financing with special reference to India.

CO 233 Critically evaluate the Federal structure of India and the objectives and recommendations of various Finance Commissions.

CO 234 Contribute effectively in course-specific interaction

Approach in teaching:

Interactive Lectures, Discussion, Tutorials.

 

Learning activities for the students:                               demonstrations , Team teaching.

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

 

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.

 

12.00
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.

 

E-Content:

 

Reference Journals:

 

Academic Year: 
2024-2025
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