Public Finance

Public Finance book has been published strictly according to the syllabus of B.Com. Semester III of Lucknow University, Lucknow.

• Public Finance, state Richard Musgrave and Peggy Musgrave, “in both theory and practice, do not stand still.” Developments in both theory and fiscal institutions take place and this process is a continuing one. As such, we felt the need to revise our present book.
• In the first chapter, we have tried to briefly add the contours of new public finance to which a large number of eminent economics have contributed, including the Nobel laureates in economics.
• As in the earlier edition, due care has been taken in this edition too to discuss and analyze various topics in a way that is intelligible to bachelor students who study public finance.
• Objective questions with answers have been provided at the end of each chapter.

Public Finance Syllabus For B.Com Semester III of Lucknow University

UNIT-I: Introduction: Meaning & Scope of Public Finance; Public goods vs. Private goods; Principle of Maximum Social Advantage; Public Budget, Techniques of Budgeting (ZBB, PBB).

UNIT-II: Public Expenditure: Meaning & Nature, Wagner’s views on increasing state activities Wiseman-peacock hypothesis, Canons and classification of public expenditure; effects on production, distribution, and economic stability.

UNIT-III: Public Revenue: Main sources of revenue, Tax revenue, Direct and Indirect Taxes, Progressive, proportional & Regressive Taxes, Value added tax and GST. The Division of the tax burden – Impact and Incidence of a tax, effects on production & distribution. Public Debt: Role and classification of Public debt and methods of their redemption. Deficit Financing.

UNIT-IV: Indian Public Finance: Different type of Budgetary Deficits; Financial Federalism under the constitution, Finance Commission – meaning and current Finance Commission, Budgetary Procedure and Financial Control in India. Fiscal Consolidation and FRBM Act

Public Finance Book Contents

1. Meaning and Scope of Public Finance
2. Public Goods Vs. Private Goods
3. Principle of Maximum Social Advantage
4. Public Budget, Techniques of Budgeting (ZBB, PBB)
5. Public Expenditure (Meaning, Nature, and Causes of Increase)
6. Canons and Classification of Public Expenditure
7. Effects on Production, Distribution and Economic Stability
8. Sources of Public Revenue
9. Classification of Tax Revenue: Direct and Indirect Taxes
10. Progressive, Proportional and Regressive Taxes
11. Value Added Tax (VAT)
12. Goods and Service Tax – GST
13. The Division of Tax Burden
14. Shifting and Incidence of Taxation
15. Shifting and Incidence of Commodity Taxes
16. Effects of Tax on Production and Distribution
17. Public Debt: General Consideration
18. Methods of Redemption of Public Debt
19. Deficit Financing
20. Budget Deficit
21. Indian Federal Finance under the Constitution
22. Indian Finance Commission
23. Budgetary Procedure and Financial Control In India
24. Fiscal Consolidation and Fiscal Responsibility and Budget Management Act, 2003 (FRBMA)