Public Finance And Budget
| Philosophy of Social Sciences |
While creating a resource page, please click here for a resource creation checklist.
Concept Map
Syntax is:
Error: Mind Map file Public Finance.mm not found
Additional References
How the topic is discussed in NCERT Books
- NCERT Text Book - Class 12th, Chapter 5 - The Government - Budget and Economy discusses public finance and budgeting. It is advanced in its treatment of the topic.
- Karnataka text book on 'Public_Finance_And_Budget'
Useful websites
Reference Books
Teaching Outlines
Please describe the key ideas to be conveyed in this section. Also broken down in details by each idea
Key Idea #1 Introduction to Public Finance
Meaning of public finance, how it is different from private finance.
Learning objectives
Meaning of public finance
Notes for teachers
Activities
- Activity No #1 '''Public finance and budget public finance introduction- Activity 1.'''
- Activity No #2 '''Public finance and budget public finance introduction- - Activity 2.'''
Key Idea #2 Public Expenditure
Meaning of public expenditure, how it is different from private expenditure Key items of public expenditure
Learning objectives
Notes for teachers
Teachers can check newspaper for articles discussing the Indian or Karnataka budgets. You can check on-line for news items around February to find articles on public finance, public expenditure etc.
Just talking about absolute amounts may become difficult to understand. Converting the amounts to percentages may make it easier. For eg. converting the total expenditure outlay for the year into 100, you can derive the percentages of other expenditure items, such as education, law and order, health etc. This will give the students a better relative idea of the importance given by the state to different items.
Activities
- Activity No #1 '''Public finance and budget public finance public expenditure - Activity 1.'''
- Activity No #2 '''Public finance and budget public finance public expenditure - Activity 2.'''
Key Idea #3 Receipts
While for any one individual or institution, the types of income are quite limited, for a Government, it is not so. Governments have the right to levy and collect tax, which is not available to others. Hence this means that Governments can increase their revenues by suitably adjusting the tax rates and also increasing the coverage for a tax. Hence as the text book mentions, while individuals will try to manage their expenditure based on their income (revenue), for Governments, it is often the opposite - they work out the amount of expenditure they want to incur and then see how they can raise revenues.They can also borrow. In addition governments can also do 'deficit financing' which individuals cannot, this is explained in next concept.
Learning objectives
Meaning of public receipts components of public receipts
Notes for teachers
Activities
- Activity No #1 Concept Name - Activity No.
- Activity No #2 Concept Name - Activity No.
Key Idea #4 Deficit Finance and Fiscal Deficit
One of the most interesting and contested concepts in public finance, is that of deficit financing. Initially, it was believed that like individuals, Governments must also 'balance' the budget, that is the receipt and expenditure must match. Excess of expenditure was believed to be economically and also ethically wrong! However John Keynes, one of the most brilliant economists, explained that Governments could spend more than the amounts they received, by simply printing more currency! Such printing of currency is termed deficit financing.
In India (and rest of the world), there is an attempt now to restrict the extent of deficit financing as a percent of the total budget outlay/GDP
Learning objectives
Meaning and purpose of deficit financing Benefits and dangers from fiscal deficits
Notes for teachers
Activities
- Activity No #1 Concept Name - Activity No.
- Activity No #2 Concept Name - Activity No.
Key Idea #5
What are the key ideas to be covered
Learning objectives
Notes for teachers
Activities
- Activity No #1 Concept Name - Activity No.
- Activity No #2 Concept Name - Activity No.
Assessment activities for CCE
Project Ideas
Community Based Project
Textbook Feedback
Please add below suggestions/ errors in the textbook.