The objective of the theory of public finance is to determine the optimal scales of government interventions or expenditures in different areas and the optimum modes of financing these expenditures. The theories continuously search for better, more acceptable and easier-to-implement solutions to the problems encountered. This book, in its third edition, continues to present, in detail, the theories of public finance, fundamental principles, and decisions taken by the Government on the basis of the guidelines yielded by these theories.
This book exposes the students to various facets of public finance which develops analytical frameworks to:
Address the issues of efficient allocation of resources between private, public and mixed goods
Ensure equitable distribution of tax burden among individuals
Find ways of minimizing inefficiency of the tax structure
Study the statutory and economic incidence of different types of taxes
Examine the implications of government borrowing
Develop the rationale of distributing economic or fiscal responsibilities and tax powers among different tiers of government.
The book makes the comprehension of the subject easier by developing simple mathematical models to derive the major results in each of the above areas, and by explaining the economic intuition of the results in detail. The concepts are illustrated with the help of simple examples taken from the Indian economy. Moreover, the book assesses India's economic policies in the light of the theories discussed. Another distinguishing feature of the book is that it contains a large number of review questions and numerical problems on every topic discussed, to help the students apply the tools and techniques learnt, and thereby, develop a sound understanding of the subject.
This book Useful for Finance students.
1. Preface
2. Introduction
3. Public Goods, Mixed Goods And Externality
4. Principles Of Tax Equity
5. Efficiency Of Taxation
6. Tax Incidence
7. Personal Income Taxation
8. Corporation Income Tax
9. Sales Tax
10. Public Debt
11. Fiscal Federalism
12. Goods And Services Tax
Index
