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Lecture I
Lecture 2
Example given from the students field visit : how they plan ( Program
and activities) , how they budget ( budget ceiling, item wise
expenditure ) and how they monitor(each evening presentation of the
findings and correction of activities if required ) and account keeping
and paper work and evaluation ( Final presentation and assessment by
the teachers).
Plan consists of
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a) Activities b) Budget c) Monitoring and
evaluation
Activities are What When How and Where, Detail action Plan is needed
which is measurable and monitorable.
Activities are translated into financial terms. How to spend and where
the resources are collected from.
Relate this student experience in the field visit to the subject matter of
the Public Finance.
Lecture 3
How do you allocate Rs 500,000 if you get it from your father or
mother or brother or sister
Submit Expenditure Plan . Why did you select the expenditure head
and how did you allocate expenditure amount. Give justification.
Public Goods vis a vis Private Goods
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Public Goods : Non exclusivity, Marginal cost zero, no price, benefits
jointly and equally shared. One persons partaking of benefits does not
reduce the benerits available to others Air pollution control, Radio Fm
Mountains etc.
Since goods are available to all , consumers are not willing to pay. The
cost of the social goods is borne by the government.
Public goods
Private Goods
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Property rights
Price
Rivalry.
Profit motive
Lecture 4
Two significance of the Great Depression – Human suffering and the change
in the government behavior in the field of public finance.
International trade plunged by half to two third as did personal income, tax
revenue, prices and profits
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Crop prices fell by roughly 60 percent.
First Five Year Plan of the USSR in 1928, which was the first attempt
in the economic history of the World to coordinate the economic and
budget policies at the macro level with a view to expedite the rate of
economic growth.
Lecture 5
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The Laissez Faire economists had a dominant role in those days .But
this view was jolted and was forced to revise after the Great Depression
of 1929-1933. The active role of the government was acknowledged
and recognized , so the Keynes views prevailed. When the Welfare
Economics was propounded, the state’s role as an investor, regulator,
and welfare was paramount.
The starting point for the expenditure theory is the failure of the
market mechanism of the laissez faire economy. H . L .BHATIA pages
218-225
B Growth
D Welfare. .
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Canons of Expenditure H . L .BHATIA pages 233-235
Lecture 6
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relationship between growth of the economy and the government
activities with the result that the government sector grows faster than
the economy.
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v. Public debt
Second thesis dealing with the growth of public expenditure was put
forth by Jack Wiseman and Allan T. Peacock.,in the book “The Growth
of Public Expenditure in the United Kingdom, 1890-1955”
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Thus each major disturbance leads to the government assuming a
larger proportion of the total national economic activity.
Madhab Ghimire
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