UNIT 1 - PUBLIC FINANCE THEORY

1.1 Overview of Fiscal Functions, Tools of Normative Analysis, Pareto Efficiency, Equity, and the Social Welfare 

● R.A. Musgrave and P.B. Musgrave, Public Finance in Theory and Practice, 5th Edition, Chapter 1
● Harvey Rosen (2005), Public Finance, Chapter 3 (pp. 33 to 46).

1.2 Market Failure, Public Goods, and Externalities
●Joseph E. Stiglitz, Economics of the Public Sector, 3rd Edition, Chapter 4.
● John Cullis and Philip Jones (1998), Public Finance and Public Choice, Chapter 3 (sections 3.1, 3.2 and 3.3)
● Harvey Rosen (2005): Public Finance, Chapter 5.

1.3 Elementary Theories of Product and Factor Taxation (Excess Burden and Incidence)
● R.A. Musgrave and P.B. Musgrave, Public Finance in Theory and Practice, 5th Edition, Chapter 14 (pp. 234-242), Chapter 15 (pp. 249-256 only part A and B).


UNIT - 2 ISSUES FROM INDIAN PUBLIC FINANCE

2.1: Working of Fiscal and Monetary Policies

●Case and Fair, Principles of Economics, 10th Edition, Chapter 24 (pp. 478-486).
● Case and Fair, Principles of Economics, 10th Edition, Chapter 25 (pp. 501-502, 505-510,515-519)
● Ch 4. Monetary Management and Financial Intermediation (From the relevant portion of the latest Economic Survey)
● Fiscal Developments (from the relevant portion of the latest Economic Survey.)

2.2: Current Issues of India’s Tax system

● Surajit Das, Some Concerns Regarding the Goods and Services Tax, Vol. 52, Issue No. 9, 04 Mar, 2017, EPW ● D K Srivastava et al., Taxing Petroleum Products: Sharing Revenue Space between Centre and States, Vol. 56, Issue No. 9, 27 Feb, 2021, EPW
 
2.3: Analysis of Budget and Deficits

● Budget at Glance (latest)
● Sections 4 & 5 from ‘Let's Talk About Budget’ by Subrat Das (2007) Centre for Budget and Governance Accountability (CBGA) (https://www.cbgaindia.org/wp-content/uploads/2016/03/PRIMER-1-FINreduced.pdf).
● Rangarajan, Chakravarthy, and D. K. Srivastava. "Fiscal deficits and government debt: implications for growth and stabilization." Economic and Political Weekly (2005): 2919-2934 -- till section II
● Ch.2, Report of 15th Finance Commission, 2020-21 -- till page 15
● Lekha Chakraborty, Union Budget 2021–22: The Macroeconomic Framework, Vol. 56, Issue No. 9, 27 Feb, 2021, EPW
● Report summary, FRBM review committee, PRS India, 2017

2.4: Fiscal Federalism in India

●Rao, M. Govinda. "Central transfers to states in India: rewarding performance while ensuring equity." Final report submitted to NITI Aayog (2017).
● Ch.3, Report of 15th Finance Commission, 2020-21
● Report Summary, 15th Finance Commission, PRS India

2.5: State and Local Finances

● Ch.2, Report of 15th Finance Commission, 2020-21 (Pg. 16-19)
● Ch. 5, Report of 15th Finance Commission 2020-21
● Fifteenth Finance Commission Recommendations: An Appraisal by Bhattacharjee & Bhattacharya, (2021) Vol.56, Issue 41. (https://epw.in/journal/2021/41/commentary/fifteenth-finance-commissionrecommendations.html.),

Assessment:
1. Final Exam
Unit I. Public Finance Theory: 60% weightage.
Unit II: Issues from Indian Public Finance: 40% weightage.
There will be some internal choice within each unit but not necessarily as per past pattern

2. Internal Assessment (IA): 30 marks
Two tests of 10 marks each and 5 marks for attendance. Or one test of 10 marks and one presentation of 10 marks according to pre-announced schedule and 5 marks for attendance.