Description

Business Economics – IV

(Foundation of Public Finance)

 

SYBCOM Semester IV

 

Syllabus

 

1. The Role Of Government In An Economy (10 Lec.)
♦ Meaning and Scope of Public finance.
♦ Major Fiscal Functions : Allocation Function, Distribution Function & Stabilization Function
♦ Principle of Maximum Social Advantage: Dalton and Musgrave Views – the Principle in Practice, Limitations.
♦ Relation between Efficiency, Markets and Governments
♦ The Concept of Public Goods and the Role of Government

2. Public Revenue (10 Lec.)
♦ Sources of Public Revenue : Tax and Non-tax Revenues
♦ Objectives of taxation – Canons of taxation – Types of taxes : direct and indirect – Tax Base and Rates of taxation : proportional, progressive and regressive taxation
♦ Shifting of Tax Burden: Impact and incidence of taxation – Processes – factors influencing incidence of taxation
♦ Economic Effects of taxation: on Income and Wealth, Consumption, Savings, Investments and Production.
♦ Redistributive and Anti–Inflationary nature of taxation and their implications.

3. Public Expenditure And Public Debt (10 Lec.)
♦ Public Expenditure: Canons – classification – economic effects of public spending – on production, consumption, distribution, employment and stabilization – Theories of Public Expenditure: Wagner’s Hypothesis and Wiseman Peacock Hypothesis – Causes for Public Expenditure Growth.
♦ Significance of Public Expenditure: Social security contributions – Low Income Support and Social Insurance Programmes.
♦ Public Debt :Classification – Burden of Debt Finance : Internal and External- Public Debt and Fiscal Solvency

4 Fiscal Management and Financial Administration (10 Lec.)
♦ Fiscal Policy: Meaning, Objectives, Constituents and Limitations.
♦ Contra Cyclical Fiscal Policy and Discretionary Fiscal Policy: Principles of Sound and Functional Finance
♦ Budget – Meaning, Objectives and Types – Structure of Union Budget – Deficit Concepts – Fiscal Responsibility and Budget Management Act.
♦ Intergovernmental Fiscal Relations : Fiscal Federalism and Fiscal Decentralization – Central-state Financial Relations – 14th Finance Commission Recommendations