The book presents a critical analysis of all the important issues connected with the theory and policy of public finance. The book is divided into two parts. Part ONE deals with the theory of public finance and Part TWO provides a discussion on the policy related issues in the context of Indian economy. In this edition, new matter has been added in a number of chapters particularly in Part Two. Latest data have been added wherever possible. An Appendix of Government of India Budgets for 2013-14 and 2014-15 has been added at the end of this book.

Since this is a textbook primarily meant for the students of undergraduate and postgraduate courses in economics of the Indian niversities, it covers broadly the syllabi of almost all the universities. The entire material has been presented in make it intelligible even for those who have no grounding in economics. The author is confident that this book will be equally useful for those appearing at all India and State level competitions.