This seminar will examine a variety of topics in the area of public finance of particular importance to developing economies. Tax reform programs adopted in many countries will be examined, including tariff liberalization, and its fiscal implications, the introduction of VAT, and the possible role of excise taxes. Revenue projection models will also be examined, as will the introduction of independent revenue boards, an increasingly popular response to tax compliance problems in developing countries. The experience of several developing countries with privatization of state-owned enterprises and its effects on fiscal policy will be discussed. The objectives of government expenditure will also be explored, examining the roles of government spending on defense, infrastructure, health and education. Systems for both budgeting and controlling public expenditures will be examined. Many countries, in attempts to improve the allocation of government expenditures, have moved toward program budgeting and away from incremental budgeting. The benefits and problems of doing so will be explored. In response to efforts to reduce deficits, expenditures have been under pressure in many countries. Means of controlling aggregate expenditure, and their allocation when heavily constrained, will also be explored. Undergraduate enrollment accepted with instructor's permission.
C. HILL