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asus C 60215

Public Good.
Deficit Financing.

VAT.
Zero Base Budget.
Mixed Goods With Example.
Vertical Equity.
Revenue Deficit.
(10 x 2 = 20 marks)
Section C (Short Essays)
Answer any six questions.
Each question carries 5 marks.

Comment on the key recommendations.of the 14th Finance Commission.

Enumerate the various methods of debt redemption ?
Describe the Peacock-Wiseman Hypothesis of Public expenditure.
Write down the three major fiscal functions of the government according to Prof. Musgrave.
Point down the difference between impact and incidence of a tax.
Briefly explain the idea behind performance budgeting.
Explain why Governments borrow funds even when they can raise revenue through taxation ?
What are the merits and demerits of proportional taxes ?
(6 x 5 = 30 marks)
Section D (Essay Questions)

Answer any two ‘questions.
Each question carries 12 marks.

Explain Principle of Maximum Social Advantage using a diagram.
Describe in detail the Ability to Pay theory of taxation.
What are the causes of growth of public expenditure in India? Explain.
Explain the concept of Cost Benefit analysis with suitable examples.
(2 x 12 = 24 marks)