The course is intended to equip students with knowledge, skills and attitudes on the role of the public sector and the financing of public sector activities.

Upon completion of this course, you should be able to:

1. Identify the theoretical foundations of public policy 

2. Relate the economist's framework for policy analysis, development and evaluation

3. Analyse the role taxation in the public sector

4. Evaluate the breadth and scope of public economics; 

Introduction to Public Finance: Meaning and scope of public finance, nature of public finance, public finance vs private finance

Government Reporting Systems: Definition and purpose of government reporting systems, Components of public financial management and reporting, Structure and functions of IFMIS and related systems, public sector financial statements and auditing, Challenges in government reporting: corruption, weak controls, and reforms

The Role of Government in the Economy: Functions of government (allocation, distribution, and stabilization), Market failures and justification for government intervention, public goods vs. private goods, Positive and negative externalities and Government management of externalities (taxes, subsidies, regulation)

Public Revenue: Nature and importance of public revenue, Classification of revenue: tax and non-tax sources, Direct taxes (income, property, corporate), Indirect taxes (VAT, excise, customs duties), non-tax revenues: fees, licenses, grants, and dividends, Principles of an effective tax system and Effects of taxation on investment and income distribution

Public Expenditure: Definition and nature of public expenditure, Classification: recurrent vs. capital expenditure, Theories of public expenditure growth (Wagner’s Law, Peacock-Wiseman hypothesis), Measurement of changes in public expenditure, Economic and social implications of government spending and Patterns of expenditure in developing economies

Expenditure Control and Adjustment Policies: Budgetary control and expenditure authorization, Role of auditing and internal control systems, Expenditure ceilings and fiscal rules, Fiscal adjustment and austerity policies, Expenditure control challenges in developing countries and Role of the Controller of Budget and Public Accounts Committees

Institutional Framework for Public Finance: The institutional framework of public finance, The National Treasury: role and functions, Parliament: budget approval and oversight, Intergovernmental fiscal relations (national and county governments) and Legal and constitutional provisions guiding fiscal management

Principles and Theories of Taxation: Canonical principles of taxation (equity, certainty, convenience, economy), Theories of taxation (Ability-to-pay theory, Benefit-received theory and Socio-political theory), Principle of social benefit (assumptions, applications, limitations), Relevance of taxation theories to modern fiscal policy and Tax equity and efficiency considerations

Fiscal Policy and Economic Development: Definition, nature, and objectives of fiscal policy, Tools of fiscal policy: taxation, expenditure, borrowing, Fiscal policy and economic stabilization, Fiscal deficits, public debt, and sustainability, Fiscal policy and economic growth (micro and macro perspectives) and Role of fiscal policy in poverty reduction and employment creation.

Contemporary Issues in public finance: Globalization and fiscal interdependence, Fiscal decentralization and devolution challenges, Public-Private Partnerships (PPPs) in financing development, green budgeting and sustainable financing, Digital taxation and e-commerce and Transparency, accountability, and financial innovation in the public sector