Public Finance

Paper Code: 
25DFSG603A
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

 

 

 

 

 

 

 

 

 

 

25DFSG

603A

 

 

 

 

 

 

 

 

 

Public Finance (Theory)

CO 163:Evaluate the scope, importance, and principles of public finance and government authorities.

CO 164:Examine the impact of public expenditure on the economy and understand its principles.

CO 165:Distinguish sources of government revenue and classify types of taxes.

CO 166:Analyze the effect of public debt and deficit financing in India.

CO 167:Evaluate India's federal structure and objectives and recommendations of Finance Commissions.

CO 168:Contribute effectively in course-specific interaction

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Powerpoint presentations.

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

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

 

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.

Practical: Role-play scenarios to understand public finance concepts

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.

Practical: Presentation on the effects of public expenditure, incorporating case studies for analys

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
  • Practical: Debate on tax policies, followed by report writing on the implications of taxes like VAT and GST.

 

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.
  • Practical: Analyze case studies on public debt management, then present findings on deficit financing implications.

 

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
  • Practical: Simulate Finance Commission meetings to grasp federal financial relations, followed by reports on their recommendations and fiscal policy implications

 

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: 
2025-2026
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