Changes

This can seem like a difficult and dry topic. However, if we take the actual budgets and finances of the central or state government and interpret it with the students, it can be quite interesting. Also instead of only looking at numbers, if we can convert to percentages and study, we will get an idea of the relative priority of different items in the budget/expenditure. Comparing the same item between Karnataka and India, and across states will give an idea of the relative priorities of different states. For instance, Kerala providess a high percentage of its expenditure for education and health, and this is corrleated to the much better education and health outcomes in that state. This kind of analyses can help students to think about what should be a state's priorities.

This can seem like a difficult and dry topic. However, if we take the actual budgets and finances of the central or state government and interpret it with the students, it can be quite interesting. Also instead of only looking at numbers, if we can convert to percentages and study, we will get an idea of the relative priority of different items in the budget/expenditure. Comparing the same item between Karnataka and India, and across states will give an idea of the relative priorities of different states. For instance, Kerala providess a high percentage of its expenditure for education and health, and this is corrleated to the much better education and health outcomes in that state. This kind of analyses can help students to think about what should be a state's priorities.

Economists have had diverse views of the scope of public finance. On one side, are those who believe in [https://en.wikipedia.org/wiki/Laissez-faire 'least government role'], they would like to minimise role of public finance, to collecting minimum taxes to finance basic duties of the state such as defence and law and order. [https://en.wikipedia.org/wiki/Adam_Smith Adam Smith] was one of the earliest and popular economists, whose views were seen as supportive of laissez faire. However, since the economist [https://en.wikipedia.org/wiki/John_Maynard_Keynes Keynes], it is accepted that Governments need to spend on the three goals - allocation, distribution and stabilisation. Even a strong supporter of laissez faire like [https://en.wikipedia.org/wiki/Friedrich_Hayek Friedrich Hayek] agreed that public finance was required to stabilise the economy and counter the business cycles (of boom and recession). Bringing in these opposite views of Keynes an Hayek and asking students to discuss their arguments can make it interesting. Their ideas can be compared with the current practices in public finance. (In India, Keynesian economics is very strongly adopted - the Governments raise funds using tax as well as borrowings and deficit financing and use it for developmental expenditure). However, Governments in India have also become sensitive to the problem of inflation, which is caused to a large extent by deficit financing and have passed a law restricting the extent of deficit financing.

Economists have had diverse views of the scope of public finance. On one side, are those who believe in [https://en.wikipedia.org/wiki/Laissez-faire 'least government role'], they would like to minimise role of public finance, to collecting minimum taxes to finance basic duties of the state such as defence and law and order. [https://en.wikipedia.org/wiki/Adam_Smith Adam Smith] was one of the earliest and popular economists, whose views were seen as supportive of laissez faire. However, since the economist [https://en.wikipedia.org/wiki/John_Maynard_Keynes Keynes], it is accepted that Governments need to spend on the three goals - allocation, distribution and stabilisation. Even a strong supporter of laissez faire like [https://en.wikipedia.org/wiki/Friedrich_Hayek Friedrich Hayek] agreed that public finance was required to stabilise the economy and counter the business cycles (of boom and recession). Bringing in these opposite views of Keynes an Hayek and asking students to discuss their arguments can make it interesting. Their ideas can be compared with the current practices in public finance. (In India, Keynesian economics is very strongly adopted - the Governments raise funds using tax as well as borrowings and deficit financing and use it for developmental expenditure). However, Governments in India have also become sensitive to the problem of inflation, which is caused to a large extent by deficit financing and have [https://en.wikipedia.org/wiki/Fiscal_Responsibility_and_Budget_Management_Act,_2003 passed a law] restricting the extent of deficit financing.

===Activities===

===Activities===