SYBA Sem III paper IV Public Finance 1 Syllabus Mumbai University by munotes
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AC- 26/07/2019
Item No. - 4.26
UNIVERSITY OF MUMBAI
Revised Syllabus for the S.Y.B.A . (Sem III)
Paper I V
Public Finance
Course: Economics
(As Per C hoice Based Credit System with effect from the
academic year 2020 -21)
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SYBA - SEMESTER III
Economics – Paper IV
Public Finance
Preamble
Public Finance is the study of government policy from the point of economic efficiency and
equity. The role and functions of the government have been changing through out time. The
existence of externalities, acceleration of economic growth, raising the lev el of employment,
the need and concern for adjustment in the distribution of income and wealth etc. require the
use of package of policies which require tax systems, expenditure programmes, rising of debt,
issues of deficit etc. This paper deals with basic concepts which explain the need for
government intervention. It exposes the student to public budget through issues of taxation,
expenditure, debt and concepts of deficit. The last Unit is related to topics concerning Indian
Public Finance.
Unit – I Introduction (12 Lectures)
Meaning and Scope of Public Finance; Public F inance versus Private Finance; Market
Failure: Public Goods and Private Goods, Externalities, Efficiency versus Equity; Principles
of Sound Finance and Functional Finance; Allocation, Distribution, Stabilisation and Growth
Functions o f the Government
Unit - II Fiscal Policy : Budget and Taxation (12 Lectures)
Dalton’s a nd M usgrave Versions of the Law of Maximum Social Advantage; Role of
Government in a Modern Economy; Types of Public Budget; Structure of Public Budget;
Role of Taxation; Merits and Demerits of Direct and Indirect Tax Policy; Features of Good
Tax System ; Concept of Impact, Incidence and Shifting of Taxation; Elasticity and
Determination o f Tax Burden
Unit III Fiscal Policy: Public Expenditure and Debt (12 Lectures)
Canons of Public Expenditure; Classification of Public Expenditure; Wagner’s Law of Public
Expenditure; Public Expenditure a s an Instrument of Fiscal Policy; Meaning and Types of
Public Debt; Burden of Public Debt; Principles of Public Debt Management; Concepts o f
Deficits
Unit IV Indian Public Finance (12 Lectures)
Budget o f The Government o f India (Previous Financial Year); Sources o f Public Receipts
(Tax And Non -Tax, Introduction To GST ); Components o f Public Expenditure; Sources o f
Public Borrowing and Debt Liabilities; Deficits; Appraisal o f FRBM Act 2004 ; Fiscal
Federalism: Fourteenth Finance Commission Recommendations
References:
1. J. Hindriks, G. Myles, (2006) , Intermediate Pu blic Economics, MIT Press .
2. Harvey Rosen, (2005 ), Public Finance, Seventh Edition, McGraw Hil l Publications .
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3. KaushikBasu and Maertens (ed) , (2013 ), The New Oxford Companion to Economics
in India, Oxford University Press.
4. Sury M.M., (1990 ), Government Budgeting in India , Commonwealth Publishers.
5. Bhatia H.L., ( 2012) , Public Finance, Vikas Publications .
6. Report of the Fourteenth Finance Commission ,Government of India .