Mohammad Yousaf • Athar Inam• Abdul Sammad• Mohammad Salman• Aqib Raza• Taifoor Nazar

• Principle of public finance• Public revenue and taxation

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Athar Inam

The role of state in economic affairs &

Functions of a modern state

The role of state in economic affairs• Adam smith• Communists

Functions of a modern state• Provision of defense and security• Direct social activities• Economic function

Economic Function• Businesses of monopolistic nature• Where private capital is not attracted• Protection of economically weak persons• Exploitation by forming monopolistic combination• Protection of consumer• State and economic planning

Abdul Sammad

• Public finance• Public finance vs. private

finance• Division of public finance

Public finance vs. private finance• Adjustment of income and expenditure• Unit of time• An individual cannot borrow from himself• Issue of currency • Provision for the future• Big changes in public finance• Surplus budgeting• Mystery shrouds individual finance

Division of public finance

Mohammad Salman

• Public expenditure• Causes of growth of public

expenditure• Principles of public expenditure

Causes of growth of public expenditure• Increase in defense expenditure• Expansion of govt. functions• Backward area & Increase in

population• Higher price level• Increase in public revenue• Duplication of expenses• Accelerating economic growth

Principles of public expenditure• The principle of maximum social advantage• The principle of economy• The principle of balanced budget• The principle of elasticity• No unhealthy effect on production and distribution

Aqib Raza

• Types of taxes• Principles of taxes

Types of taxes• Tax• Fee• Price• Special assessment

Principles of taxes• Equality or ability• Certainty• Convenience• Economy• Productivity• Elasticity• Simplicity• Diversity

of

Mohammad Yousaf

• Canons of taxation• Proportional vs. Progressive

taxation system

Principles of taxation• Benefit principle• Cost of service principle• Ability to pay principle

Proportional principle

Progressive principle

Arguments in favour of P.T.• Equality of sacrifice• More revenue• Reduce the inequality of income• Less expenses on taxation• Help canon of elasticity• Decrease unemployment

Argument against P.T.• Discourage saving• Difficult to formulate• Public show false statement