Course

Unit 1

Nature, Definition, Scope of Public Finance – Role of Public Finance in Economic Development –

Distinguish between public and Private Finance – Principles of Maximum Social Advance

Unit 2

Public Revenue-Sources of Public Revenue-Taxes Classification and Importance of Taxes – Significance, merits and demerits of direct and indirect taxes – Incidence and effects of taxation Significance of Direct Tax and GST & Local Taxation Public Expenditure -Classification and Cannons of Public Expenditure -Effects of Public expenditure on – Production, Distribution and Economic Growth.

Unit 3

Public Debt-Need, Sources and repayment, Effects of Public debt on Money Supply- Economic Growth and Economic Stability.

Unit 4

Federal Finance: Financial Issues in a Federal Setup – Principles of efficient disbursement of financial resources between Centre and States – Problems of financial imbalances and measures for adjustments.

Unit 5

Budgets- Budgets and Planning-Classification of Budgets – Budget and National Accounts – Fiscal Policy – Objectives of Fiscal Policy – Deficit Financing – Need, Significance and Limitations.

Course Objective:

To enable students to gain practical knowledge about public and private finance and components of finance.

Course Outcomes:

The students will be able

C01: To understand the importance of the public sector in a developing nation like India

CO2: To understand the different sources of public revenue and the effects of public expenditure on economic growth.

CO3: To understand the effect of public debt on Money Supply, Economic Growth and Economic Stability.

CO4: To understand the principles of efficient disbursement of financial resources between Centres and States.

CO5: To understand intricacies of budget and planning

Textbooks:

1. Musgrave, A., and Musgrave, P.A. – Public Finance in Theory and Practice – McGraw Hill,.
2. Buchanan, M – The Public Finance – Richard D. Irwin, Inc.

References:

1. Hansen, H. – Fiscal Policy and Full Employment – W.W. Norton and Company
2. Bhargava, N. – Theory and Working of Union Finance in India – Chaitanya Publishing House