BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE, PILANI

Second Semester 2008-09

Comprehensive Examination

Course No. ECON C322/ FIN C422

Course Title: Public Finance

Date: 8-05-09 Time: 3 hrs MM 40

PART A: CLOSED BOOK

Note: Every Question carries 2 marks.

1. Is agriculture in India really tax free? Discuss.

2. Describe 5 categories of tax revenue and give an example of each.

3. What action is required to be taken by states regarding fiscal reform facility

according to recommendations of the 12th finance commission?

4 What are the terms of reference of the 13th finance commission pertaining to
(i) grants in aid to states
(ii) panchayats and municipalities

5. Enumerate the sources of Public receipts. Which of these are not included in
Public revenue?

6. Explain horizontal equity and vertical equity with respect to choice of tax base.

7. Enumerate the problems involved in Public provision for social goods.

8. Why is consumption tax superior to income tax?

 PART B: OPEN BOOK

Note: Every question carries 4 marks

11. Discuss the tax proposals of Union Budget 2009-10 and the underlying rationale

behind the proposals.

What is revenue deficit, fiscal deficit and primary deficit? What is the quantum of

each of these in this budget and what is the expected impact upon the private sector?

12. Evaluate the current status of wealth tax in India in the context of canons of

taxation.

13. What is GST? What are the main features of GST? What are the expected benefits

in quantitative terms from GST?

14. Enumerate the role of public sector in India in the context of the goal of attaining

“Control of the commanding heights of the economy”.

Explain the current financial status (as in Budget 2009-10) of the largest departmental

undertaking in India.

15. What is Public debt? What is the purpose of raising public debt?

How is burden different in the case of internal debt from that in case of external debt?

What comprises “Other Liabilities” usually stated along with Public debt figures?

16. Explain the relationship of the theoretical basis of federation with federal finance

and local self-government in India.

What is the major problem in this context and how is it resolved?