LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034 M.A. DEGREE EXAMINATION – ECONOMICS

RF 05

FOURTH SEMESTER – APRIL 2007

EC 4808 – PUBLIC ECONOMICS – II

Date & Time : 16-04-2007/9.00-12.00 Dept. No. Max. : 100 Marks

Part – A

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

Comment on the changes introduced in the estimation of Personal Income Tax estimation for the year 2007-08
What is the significance of additional cess levied across the board to strengthen higher education in India?
What is MAT? Why is it necessary?
Distinguish between horizontal and vertical resource transfers.
What are statutory and discretionary resource transfers between Centre and States?
Comment on the norms recommended by XII Finance Commission for the transfer of Personal Income Tax and Excide duty receipts to States and Union Territories.
What is State Excise duty? Account for its size and growth in Tamil Nadu in recent years.

Answer any FOUR questions in about 250 words each. (4 x 10 = 40 marks)

Account for the fiscal deficit of Tamil Nadu government.
How are proportional taxes on corporate income shifted under imperfect competition?
Explain the concept of fiscal dynamics with the help of Paul Antony Samuelson’s model.
“Elasticity of LM and IS schedules determines the role of fiscal and monetary policies in economic stabilization” – Discuss.
Bring out the salient features of Railway budget for the year 2007-08.
What is infant industry argument? How far it is relevant in India today?
“Agriculture in India is under taxed”. Substantiate your view.

Answer any TWO questions in about 300 words each. (2 x 20 = 40 marks)

Propose the ideal fiscal policy mix for India for sustainable economic growth and development.
What are the major areas of conflict in Centre-State financial relations in India? How are they handled?
(a) Measure excess burden under general equilibrium conditions.

(b) Measure the burden arising out of a tax on corporate income.