Loyola College B.A. Economics Nov 2006 Fiscal Economics Question Paper PDF Download


AN 15


         EC 5503 – FISCAL ECONOMICS

(Also equivalent to ECO 508)



Date & Time : 01-11-2006/9.00-12.00         Dept. No.                                                        Max. : 100 Marks




Part  – A


Answer any FIVE questions in about 75 words each.                     (5 x 4 = 20 marks)

  1. Distinguish between public finance and private finance?
  2. What is the effect of public expenditure on ability to work, save and invest?
  3. Distinguish between tax evasion and tax avoidance.
  4. Name the non-tax revenues of the Government of India.
  5. Differentiate between public debt and tax.
  6. What is meant by zero based budget?
  7. List out the canons of taxation.


Part – B


Answer any FOUR questions in about 300 words each.               (4 x 10 = 40 marks)

  1. “Public finance is the study of principles underlying the spending and raising of funds by public authorities” – Explain.
  2. Describe the main characteristics of a good tax system.
  3. Explain the Wagner’s law of public expenditure. Do you think that the law operates in India? Substantiate your answer.
  4. What is the importance of income-tax as a source of revenue for Government of India? Can expenditure tax be replaced by income tax?
  5. Discuss the role of deficit financing in a developing economy like India.
  6. Critically examine the benefit theory of taxation.
  7. Elaborate the argument for and against corporation tax.


Part – C


Answer any TWO questions in about 900 words each.                 (2 x 20 = 40 marks)

  1. “Public finance must be based on principles of maximum social advantage” – Discuss.
  2. What are the various principles of taxation? State and explain the main difficulties in the way of practical application of these principles.
  3. Discuss the concept of taxable capacity. Explain the factors, which determine the taxable capacity of a community. How would you measure taxable capacity?

“If fiscal policy has to achieve the desired objectives of economic stability great care must be exercised with regard to its timing and size” – Discuss.

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