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 textbook is designed to serve the needs of undergraduate and postgraduate students of economics for the paper Public Finance/Public Economics. NEW TO THE THIRD EDITION: Introduces a new Chapter 11 on Goods and Services Tax (GST) Incorporates updated data (in the tables) throughout, including the newly revised tax slabs.

India is an open economy, and the dynamics of it can be witnessed from the inflation and deflation of the rupee value in the market. This comprehensive book on Indian Economy shows how it behaves, and how its parameters are weighed and analyzed vis-a-vis the macroeconomic theories. This book attempts to make a more complete and clearer presentation of the basic models of macroeconomics principles, and their effect on India's current economic conditions. International Monetary Fund (IMF) thrusted upon New Economic Policy in India, which aims at leaving the allocation of resources entirely to the market forces deriving its rationale from neoclassical macroeconomics. This neoclassical macroeconomics is dealt with in a proper perspective in the book. Part I presents the basic models of open economy macroeconomics, and Part II applies them to explain India's recent macroeconomic performance. The book also assesses India's current fiscal policy, monetary policy and the policy of forcible land acquisition for promotion of modern industry. The book is designed as a reference for the undergraduate and postgraduate students of Economics.

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 problems that governments handle are complex, and this makes the theory of public finance challenging. It is continuously searching for better, more acceptable and easier-to-implement solutions to problems. This book, now in its second edition, examines the major theories of public finance, starting with fundamental principles, and explains how government decisions are taken on the basis of the guidelines based on these theories. This new edition includes updated data throughout, including newly revised tax slabs. This book exposes students to various facets of public finance to help develop analytical frameworks to: Address issues of efficient allocation of resources between private, public and mixed good. Ensure equitable distribution of the tax burden among individuals. Find ways of minimizing the inefficiency of the tax structure. Study the statutory and economic incidence of different types of taxes. Examine the implications of government borrowing. Develop a rationale of distributing economic or fiscal responsibilities and tax powers among different tiers of government. The book makes understanding the subject easier by developing simple mathematical models to derive major results in each of the above areas, and by explaining the economics behind 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 is that it contains a large number of review questions and numerical problems on every topic discussed to help students apply the techniques learnt, and thereby, develop a sound understanding of the subject.