First Semester

MPA 504: Public Finance

The objective of this course is to provide students with the basic knowledge of public sector economics and fiscal administration so as to make them competent and capable in understanding its evolution, principles and theories together with the significance of the public financial operation in the modern era.

Course Contents

Unit 1: Introduction to Public Finance (10 LH)
  • Concept, nature, scope and significance of public finance
  • Functions of public finance: allocation, distribution and stabilization
  • Fiscal policy: concept, objectives and scope
Unit 2: Public Revenue       (10 LH)
  • Concept of public revenue, cannons of taxation, principles of taxation: benefit principle and ability to pay principle
  • Characteristics of effective tax system, revenue administration
Unit 3: Public Expenditure (10 LH)
  • Concept, structure and principles of public expenditure, pattern of public expenditure, public expenditure financial accountability (PEFA)
Unit 4: Public Debt (10 LH)
  • Concept and need of public debt
  • Sources and structure of public debt
  • Burden of public debt
  • Principles of debt management
Unit 5: Budgeting (LH 8)
  • Concept of government budgeting
  • Theories of budgeting: classical and modern concepts of budgeting
  • Types of budgeting
  • Process of government budgeting in Nepal and medium-term expenditure framework (MTEF)


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